The Operating Strategies of Small-Scale Combined Heat and Power Plants in Liberalized Power Markets

Pavel Atănăsoae
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Pavel Atănăsoae: Faculty of Electrical Engineering and Computer Science, Stefan cel Mare University of Suceava, Universitatii 13, 720229 Suceava, Romania

Energies, 2018, vol. 11, issue 11, 1-16

Abstract: Distributed generation is a good option for future energy systems with respect to sustainable development. In this context, the small-scale combined heat and power (CHP) plants are seen as an efficient way to reduce greenhouse gas emissions due to lower fuel consumption compared to the separate generation of the heat and electricity. The objective of this paper is to establish operating strategies of the small-scale CHP plants to reduce operational cost and increase revenue in liberalized electricity markets. It analyzes a cogeneration plant with organic Rankine cycle and biomass fuel under the conditions of the Romanian electricity market and the green certificates support scheme for electricity generated in high efficiency cogeneration and from renewable sources. The main finding is that choosing an appropriate mode of operation and using correlated prices of heat and electricity can increase the trading profitability of a CHP plant in liberalized power markets. This can be done by an analysis of the particularities and the specific operating conditions of the CHP plant. The results show that the operating strategies of the CHP plant can yield substantial net revenues from electricity and heat sales. The CHP plant can be economically operated to a useful heat load of more than 40% when operating strategies are applied.

Keywords: combined heat and power plants; cost allocation in cogeneration; operating strategies of CHP plants; power markets; electricity and heat prices (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
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