Average variable cost calculation method for cogeneration by considering heat and power demand characteristics

• Main Authors: Hyeongig Kim, Yong-Tae Yoon
• Format: Conference Proceeding
• Language: English
• Subjects: Average variable cost; Boilers; CHP; Cogeneration; Demand characteristic; Integrated energy system; Mathematical model; Planning; Power demand; Resistance heating
• ISSN: 1944-9933
• DOI: 10.1109/PESGM.2016.7741330

The optimal planning and operation of integrated energy systems have more economic and environmental advantages than individually optimized systems because of the increasing interdependency between different energy systems. A combined heat and power generation system (CHP) generates electricity and heat simultaneously and is expected to play a key role in both power systems and heat supply systems. An average variable cost (AVC) has been used in planning problems to determine the optimal capacity of generators, boilers, and CHPs. The AVC is calculated from historical data without considering operating points which are affected by demand characteristics. In addition, in the process of calculating AVCs, the heat output of CHPs is neglected and only the power output is considered. In this paper, an AVC calculation method is proposed for the planning problem of a cogeneration system. We suggest a two-dimensional linearized variable cost model to calculate the AVCs simpler and formulate a scheduling problem including the suggested model as mixed integer linear programming (MILP). The problem is solved by general algebraic modeling system (GAMS) and the results are used for calculating AVCs not only in power but also in heat part. Demand patterns in Korea are used to find the operation points of CHP and AVCs.