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Technical and Economic Analysis of Low-Emissions Modernization of Existing Heating Plants in Poland

Author

Listed:
  • Anna Hnydiuk-Stefan

    (Faculty of Production Engineering and Logistics, Opole University of Technology, 45-758 Opole, Poland)

  • Aleksandra Otawa

    (Faculty of Production Engineering and Logistics, Opole University of Technology, 45-758 Opole, Poland)

  • Krzysztof Stefan

    (Faculty of Electrical Engineering Automatic Control and Informatics, Opole University of Technology, 45-758 Opole, Poland)

  • Dariusz Zmarzły

    (Faculty of Electrical Engineering Automatic Control and Informatics, Opole University of Technology, 45-758 Opole, Poland)

Abstract

An analysis is performed with regards to technologically outdated heating plants operating in many areas where fossil fuels such as coal and gas are utilized, in order to consider the alternatives of their modernization. By application of a chart using a variety of alternatives, the economic feasibility of executing two types of modernization of heating plants are explored: a single-fuel gas–steam CHP plant and a coal-fired heating plant to a coal-fired CHP plant with a condensing turbine. This study demonstrates how the selection of modernization technology is affected, in terms of profitability, by the value and variability in time of the price relationships between energy carriers, rapidly growing charges related to CO 2 emission allowances, and costs depending on other pollutant emissions that originate from the operation of electricity and heat sources powered by fossil fuels. In both technical cases of modernization, lower prices of energy carriers coupled with CO 2 emissions allowances lead to higher prices of electricity that can be sold as additional products following this modernization, and consequently, the specific cost of heat production in the repowered heat sources is lowered. The calculations were performed by the application of models of heating plant modernization applying continuous time notations, which offer the determination of the most suitable time of initiation of this modernization. Such relationships would be difficult to describe in the case of the use of traditional discrete models. In the case of a simultaneous increase in the prices of all main factors affecting the cost of heat generation, such as the price of gas, electricity and CO 2 emissions, the fastest modernization of the heating plant to single-fuel gas–steam CHP provides the possibility of the best economic performance.

Suggested Citation

  • Anna Hnydiuk-Stefan & Aleksandra Otawa & Krzysztof Stefan & Dariusz Zmarzły, 2021. "Technical and Economic Analysis of Low-Emissions Modernization of Existing Heating Plants in Poland," Energies, MDPI, vol. 14(21), pages 1-26, November.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:21:p:7426-:d:674404
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    References listed on IDEAS

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    1. Westner, Günther & Madlener, Reinhard, 2012. "Investment in new power generation under uncertainty: Benefits of CHP vs. condensing plants in a copula-based analysis," Energy Economics, Elsevier, vol. 34(1), pages 31-44.
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    5. Ryszard Bartnik & Zbigniew Buryn & Anna Hnydiuk-Stefan & Adam Juszczak, 2018. "Methodology and a Continuous Time Mathematical Model for Selecting the Optimum Capacity of a Heat Accumulator Integrated with a CHP Plant," Energies, MDPI, vol. 11(5), pages 1-17, May.
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    Cited by:

    1. Joanna Wyleżałek, 2021. "Dilemmas around the Energy Transition in the Perspective of Peter Blau’s Social Exchange Theory," Energies, MDPI, vol. 14(24), pages 1-10, December.

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