How to Reduce the Full Lifecycle Cost of Gas Generator Sets?
When purchasing a generator set, the initial price is only part of the total cost. The Life Cycle Cost (LCC) includes initial procurement, installation, fuel consumption, maintenance, repairs, and final disposal.
This article helps you choose the most cost-effective gas generator set solution from a full lifecycle perspective.
Cost Item | Estimated Proportion | Description |
Initial Procurement Cost | 15–25% | Equipment price, taxes, and transportation |
Installation Cost | 5–10% | Foundation construction, gas and electrical connections, generator room construction |
Fuel Cost | 50–65% | Fuel expenses for natural gas, LPG, biogas, etc. |
Maintenance Cost | 8–15% | Consumables such as engine oil, filters, spark plugs, and labor costs |
Overhaul Cost | 3–5% | Engine major overhaul expenses |
Disposal / Residual Value | - | Used equipment recycling value |
Key Insight: Fuel costs account for more than 50% of the total lifecycle cost and are a core factor in cost reduction. Although maintenance costs represent a smaller proportion, proper and scheduled maintenance can significantly extend equipment lifespan and reduce the frequency of major overhauls.
Precise selection:
· Excessive power: Wastes initial investment and easily leads to carbon buildup under low load.
· Insufficient power: Causes overload operation, accelerates wear, and may even cause frequent tripping.
· Recommendation: Select the appropriate power rating precisely using the calculation method described above, leaving a 10-20% margin.
Standardized Configuration
· Choose generators with standard configurations to reduce customization costs.
· Bulk purchasing can lower the unit cost per generator set.
Choose Low-Cost Gas Sources:
· Natural Gas: Prices are relatively stable and lower than diesel..
· LPG: Pricing depends on the international oil market.
· Biogas: Uses waste from farms or landfills, with fuel costs close to zero.
· Associated Gas: Utilizing associated gas generated during oilfield extraction avoids combustion emissions and saves fuel costs.
Improve Power Generation Efficiency:
· Select high-efficiency generator sets with electrical efficiency of 40–45%.
· Every 1% increase in efficiency can reduce fuel costs by approximately 2–3%.
Combined Heat and Power (CHP):
· For locations requiring hot water or heating, choose a cogeneration (CHP) unit.
· Waste heat is recovered to supply heating, hot water, and process heating.
· The overall efficiency can reach over 80%, significantly reducing total energy costs.
Follow a Strict Maintenance Schedule
· Replace engine oil, filters, and spark plugs on time.
· Preventive maintenance costs are far lower than emergency repair expenses.
· The cost of preventive maintenance is far less than repairs after a failure.
Use Long-Life Consumables
· High-quality engine oil: longer oil replaced cycle, better protection.
· High-quality spark plugs : longer service life and more stable ignition.
Establish spare parts reserves:
· Purchasing common spare parts in bulk reduces per-unit costs.
· Avoid high shipping costs and waiting times for urgent purchases.
Train On-Site Operators
· Ensure on-site personnel acquire basic maintenance skills.
· Reduce the frequency and cost of supplier on-site service visits.
Service Life Performance of Gas Engines Under Proper Maintenance:
Operating Hours | Status | Cost Impact |
0–8,000 | Early service stage with low failure rate | Low maintenance cost |
8,000–40,000 | Stable operating stage with reliable performance | Standard maintenance cost |
40,000–48,000 | Major overhaul stage | Overhaul cost is approximately 10% of a new gensets price |
>48,000 | Continued operation after overhaul | Restored performance and extended service life |
Key Factors for Extending Engine Lifespan:
· Strictly follow the maintenance schedule
· Avoid long-term overload operation
· Use qualified fuel and high-quality consumables
· Fix small faults promptly to prevent them from escalating.
Fuel Type | Fuel Cost | Maintenance Cost | Initial Investment | Suitable Applications |
Natural Gas | Low | Medium | Medium | Piped gas coverage area |
LPG | Medium | Medium | Higher (storage tank required) | Piped gas uncovered areas |
Biogas | Extremely Low | Higher (Need gas purification system) | Higher | Organic waste resource |
Associated Gas | Extremely Low | Medium | Medium | Oilfield |
1. Precise model selection: Avoid over- or under-powered units.
2. Choose inexpensive gas sources: biogas, associated gas, piped natural gas.
3. Improve power generation efficiency: Choose high-efficiency units.
4. Combined heat and power (CHP): Recover waste heat and improve overall efficiency.
5. Strictly adhere to the maintenance checklist: Preventative maintenance reduces the frequency of major overhauls.
6. Use long-life consumables: High-quality engine oil, spark plugs.
7. Establish spare parts reserves: Bulk purchasing reduces unit costs.
8. Train operators: Reduce reliance on external services.
9. Consider used equipment: Short-term projects can reduce initial investment.
10. Focus on residual value: Well-maintained equipment has higher residual value.
We Provide More Than Equipment — We Deliver Full Lifecycle Cost Optimization Solutions
· Precise Selection Support: Assists you in calculating the most economical power configuration.
· Multi-Fuel Compatibility: Natural gas, LPG, biogas, associated gas; select the most economical fuel based on available resources.
· High-Efficiency Design: Power generation efficiency of over 39%; cogeneration options available.
· Long Lifespan Guarantee: Engines can last 15-20 years with proper maintenance.
· Spare Parts Support: Commonly used spare parts inventory ensures timely supply.
· Maintenance Training: Provides operation and maintenance training to reduce long-term service costs.
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