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Emissions spark spread and primary energy spark spread – Environmental and energy screening parameters for combined heating and power systems

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  • Smith, Amanda D.
  • Mago, Pedro J.
  • Fumo, Nelson

Abstract

The spark spread, or price differential between electricity cost and fuel cost, may be used to indicate whether a combined heating and power (CHP) system shows a cost benefit in a certain situation over a conventional separate heating and power system. This paper extends the spark spread concept to address the emission of CO2 and the consumption of primary energy by introducing two parameters: the emissions spark spread (ESS) and the primary energy spark spread (PESS). ESS and PESS are evaluated in 16 US cities for three different CHP system efficiencies, and compared to the minimum ESS and minimum PESS required for a CHP system to potentially reduce CO2 emissions (CDE) or primary energy consumption (PEC). Since the fuel mix used in electricity production, which varies with location, affects the amount of CDE or PEC due to the use of a CHP system, this paper also presents the ratios ESS/ESSmin and PESS/PESSmin that could be used for a simple analysis of the potential of a CHP system based on CDE and PEC.

Suggested Citation

  • Smith, Amanda D. & Mago, Pedro J. & Fumo, Nelson, 2011. "Emissions spark spread and primary energy spark spread – Environmental and energy screening parameters for combined heating and power systems," Applied Energy, Elsevier, vol. 88(11), pages 3891-3897.
    • Handle: RePEc:eee:appene:v:88:y:2011:i:11:p:3891-3897
    DOI: 10.1016/j.apenergy.2011.03.042
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Knizley, Alta A. & Mago, Pedro J. & Smith, Amanda D., 2014. "Evaluation of the performance of combined cooling, heating, and power systems with dual power generation units," Energy Policy, Elsevier, vol. 66(C), pages 654-665.
    2. Onishi, Viviani C. & Antunes, Carlos H. & Fraga, Eric S. & Cabezas, Heriberto, 2019. "Stochastic optimization of trigeneration systems for decision-making under long-term uncertainty in energy demands and prices," Energy, Elsevier, vol. 175(C), pages 781-797.
    3. Elias, R.S. & Wahab, M.I.M. & Fang, L., 2016. "The spark spread and clean spark spread option based valuation of a power plant with multiple turbines," Energy Economics, Elsevier, vol. 59(C), pages 314-327.
    4. Smith, Amanda D. & Mago, Pedro J., 2014. "Effects of load-following operational methods on combined heat and power system efficiency," Applied Energy, Elsevier, vol. 115(C), pages 337-351.
    5. Meybodi, Mehdi Aghaei & Behnia, Masud, 2011. "Impact of carbon tax on internal combustion engine size selection in a medium scale CHP system," Applied Energy, Elsevier, vol. 88(12), pages 5153-5163.
    6. Antonio Piacentino & Roberto Gallea & Pietro Catrini & Fabio Cardona & Domenico Panno, 2016. "On the Reliability of Optimization Results for Trigeneration Systems in Buildings, in the Presence of Price Uncertainties and Erroneous Load Estimation," Energies, MDPI, vol. 9(12), pages 1-31, December.
    7. Piacentino, Antonio & Barbaro, Chiara, 2013. "A comprehensive tool for efficient design and operation of polygeneration-based energy μgrids serving a cluster of buildings. Part II: Analysis of the applicative potential," Applied Energy, Elsevier, vol. 111(C), pages 1222-1238.
    8. Kavvadias, K.C., 2016. "Energy price spread as a driving force for combined generation investments: A view on Europe," Energy, Elsevier, vol. 115(P3), pages 1632-1639.

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