Combined Cycle Cogeneration Plant Budget Evaluation


A NAES-operated 1×1 combined cycle cogeneration plant was approaching the end of its Power Purchase Agreement (PPA) with its power offtaker. Annual plant power generation capacity factor had declined, and PPA-provided capacity payments were diminishing. The plant’s owners desired to optimize operation and maintenance (O&M) expenditures to maintain PPA-required availability while also maintaining high levels of plant safety and environmental performance.  

The plant engaged NAES Engineering (NAES) to evaluate their 2019-2021 operating budgets and planned maintenance activities to determine the level of O&M costs necessary to achieve the plant availability requirements while conforming to NAES Safety and Environmental Compliance policies and standards. NAES intended to identify potential actions which could reduce plant operation cost. 


NAES reviewed documents provided by the plant and evaluated topics including:  

  • Plant staffing 
  • The Long-Term Service Agreement between the plant and Siemens Energy, Inc.  
  • Plant Inventory 
  • Planned Maintenance Activities 
  • Purchased Commodities 

NAES identified fourteen (14) budget actions which could have a cumulative cost reduction impact of $1,276,535. Nine (9) actions posed low risk (to plant availability) and had a cumulative cost reduction impact of $720,235. NAES identified five (5) medium-risk (to plant availability) budget actions which could have a cumulative cost reduction impact of $556,300.  

NAES recommended the plant implement the nine (9) low-risk actions. NAES recommended the plant weigh the consequences before implementing medium-risk actions. 

NAES Engineering Capabilities 

NAES Engineering is a small team of experienced power plant engineers that stands ready to assist plants and their owners. The NAES Engineering team provides engineering services, power plant technical support, thermal performance improvement analysis, power plant process improvement consulting, root cause analysis facilitation, and other consultation tasks.