EconPapers    
Economics at your fingertips  
 

Business opportunities in power supply with gas engines in the health sector

Istvan Vokony (), Balint Sinkovics (), Peter Mark Sores (), Daniel Divenyi () and Maria Csete Szalmane ()
Additional contact information
Istvan Vokony: PhD, Associate Professor, Budapest University of Technology and Economics, Department of Electrical Engineering
Balint Sinkovics: Research Associate, Budapest University of Technology and Economics, Department of Electrical Engineering
Peter Mark Sores: Assistant Lecturer, Budapest University of Technology and Economics, Department of Electrical Engineering
Daniel Divenyi: PhD, Associate Professor, Budapest University of Technology and Economics, Department of Electrical Engineering
Maria Csete Szalmane: PhD, Associate Professor, Budapest University of Technology and Economics, Department of Environmental Economics and Sustainable Development

Public Finance Quarterly, 2022, vol. 67, issue 3, 413 - 429

Abstract: In addition to the provision of heat and electricity, we developed an operational concept based on new energy production facilities that guarantees uninterrupted supply on site and sells system-level services off-site - for healthcare institutions and hospitals. Based on the international experience, case studies and applied methods, not only the simulated calculations behind the strictly defined business value proposition and product sales are decisive for the evaluation of the research, but also the whole business concept needs to be developed for successful pilot projects. It can be stated that based on the local market success of the regulatory centers and VPPs, the aggregation of gas engines and the bidding with the regulatory center to the system-level services market can be identified as commercially profitable investments. Based on the trends of the examined technical-economic and regulatory environment, it is not only clear that the market for regulatory reserves is not only a favorable opportunity to offer the flexible capacity available for distributed generation today, but also the direction of changes that are still uncertain today. The market penetration of small power plants suitable for regulation and the maintenance of their profitability. At the same time, it is an important task to identify the unique elements in the value propositions, as the gas-powered units installed at the hospital have already served as a good basis for the expansion of VPPs. This is also supported by the fact that the gas engines already operate in a similar construction at the pilot sites examined - although not in a design optimized for today's market conditions, or size. Nevertheless, the incumbent gas-powered energy supplier is in an extremely favorable position in the event of an extension of the expiring heat supply contract. The aim of the research is, among other things, to find out whether the realized price difference, heat revenues, production utilization, optimized operational operation, sizing, etc. which of the factors has an impact on the investment, operation and overall business model and profitability.

Keywords: generation optimization; ESCO; gas engine; operation; UPS (search for similar items in EconPapers)
JEL-codes: O0 O1 O3 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.penzugyiszemle.hu/upload/pdf/penzugyi_ ... ony-et-al_2022_3.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pfq:journl:v:67:y:2022:i:3:p:413-429

Access Statistics for this article

Public Finance Quarterly is currently edited by Erzsebet Nemeth

More articles in Public Finance Quarterly from State Audit Office of Hungary
Bibliographic data for series maintained by Pal Peter Kolozsi ( this e-mail address is bad, please contact ).

 
Page updated 2022-10-05
Handle: RePEc:pfq:journl:v:67:y:2022:i:3:p:413-429