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THE IMPACT OF MECHANICAL RELIABILITY ON THE FINANCIAL RETURN OF A WATER‐RECYCLING PLANT

This paper presents results from the assessment of the financial viability of a water‐recycling plant based on an estimate of ‘net present value’, including the impact of mechanical reliability. The ‘net present value’of the former 0.6 Ml/d greywater recovery and re‐use plant at the Millennium Dome, London was calculated over an expected lifetime of 20 years and a capital cost of £2.2 million. A detailed analysis of the mechanical faults and shutdowns at the plant showed an improvement in reliability from 73.8% to 91.2%, attainable by investing in a dedicated critical‐spares facility. Defining the break‐even price of water as the price for which ‘net present value’is zero, the model showed the break‐even price to decrease from £1.61/m3 to £1.40/m3 by increasing reliability over the above range of values. The paper discusses the implications of this research for water‐recycling applications in general.