Simulation of Regional Economic Analysis of Closed Cycle OTEC for Empirical Application

Authors:
Publisher website
Google Scholar
Abstract
As a means to solve the power shortage problem in the South Pacific island nations and the equator, we studied the development characteristics of ocean thermal energy conversion (OTEC) using near-infinity clean ocean energy. Through the simulation of the closed OTEC plant under development, the generation amount and its economic efficiency were compared and the application characteristics of the power generation cycle according to the seawater temperature distribution were compared by applying various seawater temperature conditions. According to the characteristics of seawater heat sources in the region, the power generation output was about 759.9 kW in Kiribati, and the average power generation by region was about 590.9 kW. Regional electricity sales generated about 8,487 thousand dollars in Kiribati, which had a high power cost of 0.327 $/kWh, and 1,278 thousand dollars in Australia, generating 0.29 $/kWh. With the spread of 50 MW commercial plants, Australia and Kiribati have high net present values (NPV) of 108,000 and 580,000 thousand dollars, respectively, and their internal rate of return (IRR) are more than 8.5% and 19.6%, respectively. In the future, various benefits will be applied to secure economic feasibility and accelerate the spread of closed OTEC plant.
Funding Information
  • Ministry of Oceans and Fisheries (PMS4320)