Comparing Gas Turbines on Lifecycle Value | USP&E

New Gas Turbines

How Should Buyers Compare Gas Turbines for Long-Term Value?

Comparing gas turbines on purchase price alone is like comparing trucks on the price of the cab. Over a turbine’s working life, fuel is usually the largest cost by far, maintenance comes next, and the value of the electricity lost when the unit is down can outweigh both. A turbine that costs more up front can be the cheaper machine over twenty years, and the reverse is just as possible.

This page sets out how to compare gas turbines on lifecycle value, with a scoring sheet you can use in a tender. It deliberately contains no prices; those depend on the unit, the market and the scope.

The lifecycle cost stack

Cost element What drives it Where to get the data
Capital and installation Equipment, balance of plant, civil and electrical works, commissioning EPC proposals, not equipment quotes alone
Fuel Heat rate at your real load profile and site conditions Maker performance curves corrected for site
Planned maintenance Inspection intervals by hours and starts, parts and labour Maker or service provider maintenance plan
Unplanned outages Reliability of the model and the support behind it Fleet experience, references
Degradation Output and efficiency loss between washes and overhauls Maker data, operator experience
Residual value Market demand for the model at end of use Used equipment market

Fuel: model it on your real profile

Published heat rates are usually at base load under standard conditions. Your plant may run at part load, at altitude, in hot weather or with frequent starts. Ask each bidder for heat rate at the load points you expect, corrected for your site, then multiply by your expected hours at each point and your fuel price forecast. Small differences in heat rate become large sums over a turbine’s life.

Maintenance: hours, starts and the plan

Gas turbine maintenance intervals are counted in operating hours, starts, or a combination, depending on the maker. A peaking plant with many starts and a baseload plant with few will reach inspections at very different times on the same model. Compare the maintenance plan against your duty, the cost and duration of each inspection, and whether parts can be repaired or must be replaced. A long-term service agreement can fix much of this cost; our main site explains what an LTSA covers.

Availability: the hidden cost

Every day a turbine is down for an outage, the plant either loses revenue or buys power from somewhere else. Compare outage durations for each inspection type, the supplier’s parts holdings and repair turnaround, and how quickly support can reach your site. For remote plants, a unit with slightly lower efficiency and much faster support may win.

Fit with your plant and your future

Check frequency (50 or 60 Hz), fuel flexibility (gas only, dual fuel, ability to burn hydrogen blends where relevant), emissions performance against your permit, footprint, and whether the unit suits simple cycle now and combined cycle later. A unit that blocks a later upgrade costs value even if it is efficient today.

A scoring sheet for tenders

  1. Lifecycle fuel cost at your load profile (highest weight in most baseload cases).
  2. Capital and installation through an EPC proposal.
  3. Planned maintenance cost and outage days over the evaluation period.
  4. Support: parts, service network, response time to your site.
  5. Technical fit: frequency, fuel flexibility, emissions, footprint, upgrade path.
  6. Delivery time and its value to your project.
  7. Residual value at the end of the evaluation period.

Weight the criteria for your project before bids arrive, and bring them to a single net present value where you can. Our new gas turbines buying guide covers the procurement steps, and our new versus used comparison covers the condition question.

Data to request from every bidder

  • Performance at your site conditions: output and heat rate at base load and at your expected part-load points.
  • Degradation assumptions between washes and between major inspections.
  • Maintenance plan: intervals in hours and starts, scope and typical duration of each inspection.
  • Parts and repair: which hot section parts are repairable, typical repair cycles, lead times.
  • Availability record for the model in similar duty, with references.
  • Emissions guarantees across the load range.
  • Delivery schedule, factory testing and site support during commissioning.

Put the data into the same model for every option, using the same fuel price, hours and discount rate. Differences that look small on a data sheet often decide the comparison once they are multiplied across years of running.

New, used or modular

Lifecycle thinking applies to all three. A new unit has the longest life ahead and the newest technology. A used or remanufactured unit can deliver power sooner at lower capital cost, with life that depends on its history and refurbishment. Modular units let capacity grow in steps, keeping early capital lower. Our own modular option is the New USP&E FX-45 45MW Modular Gas Turbine for the Hyperscale Data Center sector in the USA, aimed at campuses that add capacity in stages.

About USP&E

Because we supply new, used and remanufactured turbines and then build and maintain the plants around them, we see the whole life of the asset, not just the sale. That perspective comes from 150+ power projects in 45+ countries and 25,000 MW contracted at USP&E since 2002.

Offices: Colorado Springs (1755 Telstar Dr, Suite 300), Knoxville (800 S Gay St, Suite 700), London (162-168 Regent Street), Johannesburg (22 Kildoon Rd, Bryanston), Cape Town (31 Brickfield Road, Woodstock) and China (No. 1 Ningzhou Road, Wuxi). Regions: USA | AFRICA | UK | UAE | CHINA. ISO 9001 and ISO 45001 certified.

Gas turbine comparison FAQs

How should buyers compare gas turbines for long-term value?

On lifecycle cost: capital and installation, fuel at the real load profile, planned maintenance, outage days, degradation and residual value, brought to a single present value where possible.

What is the largest cost over a gas turbine’s life?

For most baseload and mid-merit plants, fuel. That is why heat rate at the real operating profile matters more than purchase price.

How do starts affect gas turbine maintenance cost?

Many makers count starts as well as hours, so a peaking plant with frequent starts may reach inspections sooner than a baseload plant on the same model.

Is a used gas turbine better value than a new one?

It can be, when delivery speed and capital cost matter and the unit’s history and refurbishment are documented. A lifecycle comparison shows which is better for your project.

Does USP&E help with gas turbine evaluations?

Yes. Our engineers help clients compare options on lifecycle value and then deliver the plant through EPC and O&M.

Compare your options with us

Send us your load profile, site and timeline and we will help you compare gas turbine options on lifecycle value, then build and support the plant.

Talk to an engineer through the gas turbine specialists, call +27 10 822 2324 or email info@uspeglobal.com. See what is available now on our natural gas turbine inventory.


Where we operate

USA | AFRICA | UK | UAE | CHINA

USP&E United States

Colorado Springs Office: 1755 Telstar Dr, Suite 300

Knoxville Office: 800 S Gay St, Suite 700

USP&E South Africa

Johannesburg Office: 22 Kildoon Rd, Bryanston

Cape Town Office: 31 Brickfield Road, Woodstock

USP&E United Kingdom

London Office: 162-168 Regent Street

USP&E China

China Office: No. 1, Ningzhou Road, Wuxi

Call:+27 10 822 2324  |  E:info@uspeglobal.com

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