Economic Analysis On Gas Generation Power Plants

Gas generation is much different from traditional power generation in investment scale, cost structure, running style, sensitive factors of the economy of Gas Power Plant, and External value in environment, so does its economical aspect. Then issues researched in this paper has a strong practical meaning and reference value in laying out administrative and environmental policy and in offering information for investment in generation market, which is critical to the encouragement of using clean energy and the optimization in energy structure of China.This paper mainly pays attention to the economic aspect of the gas generation in the West to East Pipe Line Project, and by using analysis tools, such as Porters Five Forces Analyses, Net Pricing Module, Sensitivity curve, Equivalent Cost Curve, External Environmental Value Module, and Game Theory, to get a relatively understanding for the technique economic aspect of Gas generation.The main results of this research are, firstly, gas generation is needed for its excellent ability in load adjustment and environmental value, but at the same time can be easily substituted. We find that its core competence and substantial comparative advantage is its lower investment scale, excellent ability in load adjustment, preferable operation cost, and environmental value. Secondly, the key factor influencing the economic aspect of gas generation is the gas price and pricing approach. Thirdly, we can evaluate the comparative advantage of gas generation by analyzing how much is the gas price, when the electrical coal is certain, and what about it when environmental value is considered. Fourthly, gas generation has an excellent external value in environment compared with the traditional power plant with FGD. And in the end, the game between gas generation industry and gas running industry is a non-zero game is which the two sides pursuing they own maximum profitability under the pursuing of the common.