IDEAS home Printed from
   My bibliography  Save this article

Techno-economic analysis of a coal-fired CHP based combined heating system with gas-fired boilers for peak load compensation


  • Wang, Hai-Chao
  • Jiao, Wen-Ling
  • Lahdelma, Risto
  • Zou, Ping-Hua


Combined heat and power (CHP) plants dominate the heating market in China. With the ongoing energy structure reformation and increasing environmental concerns, we propose gas-fired boilers to be deployed in underperforming heating substations of heating networks for peak load compensation, in order to improve both energy efficiency and environmental sustainability. However, due to the relatively high price of gas, techno-economic analysis is required for evaluating different combined heating scenarios, characterized by basic heat load ratio (β). Therefore, we employ the dynamic economics and annual cost method to develop a techno-economic model for computing the net heating cost of the system, considering the current state of the art of cogeneration systems in China. The net heating cost is defined as the investment costs and operations costs of the system subtracted by revenues from power generation. We demonstrate the model in a real-life combined heating system of Daqing, China. The results show that the minimum net heating cost can be realized at β=0.75 with a cost reduction of 16.8% compared to coal heating alone. Since fuel cost is the dominating factor, sensitivity analyses on coal and gas prices are discussed subsequently.

Suggested Citation

  • Wang, Hai-Chao & Jiao, Wen-Ling & Lahdelma, Risto & Zou, Ping-Hua, 2011. "Techno-economic analysis of a coal-fired CHP based combined heating system with gas-fired boilers for peak load compensation," Energy Policy, Elsevier, vol. 39(12), pages 7950-7962.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:12:p:7950-7962
    DOI: 10.1016/j.enpol.2011.09.050

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Saidur, R. & Ahamed, J.U. & Masjuki, H.H., 2010. "Energy, exergy and economic analysis of industrial boilers," Energy Policy, Elsevier, vol. 38(5), pages 2188-2197, May.
    2. Bowitz, Einar & Dang Trong, Maj, 2001. "The social cost of district heating in a sparsely populated country," Energy Policy, Elsevier, vol. 29(13), pages 1163-1173, November.
    3. Ouyang, Jinlong & Ge, Jian & Hokao, Kazunori, 2009. "Economic analysis of energy-saving renovation measures for urban existing residential buildings in China based on thermal simulation and site investigation," Energy Policy, Elsevier, vol. 37(1), pages 140-149, January.
    4. Rong, Aiying & Lahdelma, Risto, 2007. "Efficient algorithms for combined heat and power production planning under the deregulated electricity market," European Journal of Operational Research, Elsevier, vol. 176(2), pages 1219-1245, January.
    5. Park, Hi-Chun & Kim, Hoseok, 2008. "Heat supply systems using natural gas in the residential sector: The case of the agglomeration of Seoul," Energy Policy, Elsevier, vol. 36(10), pages 3843-3853, October.
    6. Dzenajaviciene, E.F. & Kveselis, V. & McNaught, C. & Tamonis, M., 2007. "Economic analysis of the renovation of small-scale district heating systems--4 Lithuanian case studies," Energy Policy, Elsevier, vol. 35(4), pages 2569-2578, April.
    7. Lipošćak, Marko & Afgan, Naim H. & Duić, Neven & da Graça Carvalho, Maria, 2006. "Sustainability assessment of cogeneration sector development in Croatia," Energy, Elsevier, vol. 31(13), pages 2276-2284.
    8. Xu, Gang & Yang, Yong-ping & Lu, Shi-yuan & Li, Le & Song, Xiaona, 2011. "Comprehensive evaluation of coal-fired power plants based on grey relational analysis and analytic hierarchy process," Energy Policy, Elsevier, vol. 39(5), pages 2343-2351, May.
    9. Rong, Aiying & Lahdelma, Risto, 2005. "An efficient linear programming model and optimization algorithm for trigeneration," Applied Energy, Elsevier, vol. 82(1), pages 40-63, September.
    10. Zhang, Ming & Mu, Hailin & Ning, Yadong, 2009. "Accounting for energy-related CO2 emission in China, 1991-2006," Energy Policy, Elsevier, vol. 37(3), pages 767-773, March.
    11. Badescu, Viorel, 2007. "Economic aspects of using ground thermal energy for passive house heating," Renewable Energy, Elsevier, vol. 32(6), pages 895-903.
    12. Wang, Jiang-Jiang & Jing, You-Yin & Zhang, Chun-Fa & Shi, Guo-Hua & Zhang, Xu-Tao, 2008. "A fuzzy multi-criteria decision-making model for trigeneration system," Energy Policy, Elsevier, vol. 36(10), pages 3823-3832, October.
    13. Rezessy, Silvia & Dimitrov, Konstantin & Urge-Vorsatz, Diana & Baruch, Seth, 2006. "Municipalities and energy efficiency in countries in transition: Review of factors that determine municipal involvement in the markets for energy services and energy efficient equipment, or how to aug," Energy Policy, Elsevier, vol. 34(2), pages 223-237, January.
    14. Lahdelma, Risto & Makkonen, Simo & Salminen, Pekka, 2009. "Two ways to handle dependent uncertainties in multi-criteria decision problems," Omega, Elsevier, vol. 37(1), pages 79-92, February.
    15. Lahdelma, Risto & Hakonen, Henri, 2003. "An efficient linear programming algorithm for combined heat and power production," European Journal of Operational Research, Elsevier, vol. 148(1), pages 141-151, July.
    16. Wei, Bing & Wang, Song-Ling & Li, Li, 2010. "Fuzzy comprehensive evaluation of district heating systems," Energy Policy, Elsevier, vol. 38(10), pages 5947-5955, October.
    17. Iacobescu, Flavius & Badescu, Viorel, 2011. "Metamorphoses of cogeneration-based district heating in Romania: A case study," Energy Policy, Elsevier, vol. 39(1), pages 269-280, January.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Xiong, Weiming & Wang, Yu & Mathiesen, Brian Vad & Zhang, Xiliang, 2016. "Case study of the constraints and potential contributions regarding wind curtailment in Northeast China," Energy, Elsevier, vol. 110(C), pages 55-64.
    2. Fang, Tingting & Lahdelma, Risto, 2015. "Genetic optimization of multi-plant heat production in district heating networks," Applied Energy, Elsevier, vol. 159(C), pages 610-619.
    3. Wang, Haichao & Abdollahi, Elnaz & Lahdelma, Risto & Jiao, Wenling & Zhou, Zhigang, 2015. "Modelling and optimization of the smart hybrid renewable energy for communities (SHREC)," Renewable Energy, Elsevier, vol. 84(C), pages 114-123.
    4. Rahman, Md. Mizanur & Paatero, Jukka V. & Lahdelma, Risto, 2013. "Evaluation of choices for sustainable rural electrification in developing countries: A multicriteria approach," Energy Policy, Elsevier, vol. 59(C), pages 589-599.
    5. repec:eee:energy:v:128:y:2017:i:c:p:337-356 is not listed on IDEAS
    6. repec:gam:jeners:v:10:y:2017:i:8:p:1095-:d:105930 is not listed on IDEAS
    7. Zhang, Jian & Cho, Heejin & Knizley, Alta, 2016. "Evaluation of financial incentives for combined heat and power (CHP) systems in U.S. regions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 738-762.
    8. Zhang, Lipeng & Gudmundsson, Oddgeir & Thorsen, Jan Eric & Li, Hongwei & Li, Xiaopeng & Svendsen, Svend, 2016. "Method for reducing excess heat supply experienced in typical Chinese district heating systems by achieving hydraulic balance and improving indoor air temperature control at the building level," Energy, Elsevier, vol. 107(C), pages 431-442.
    9. Da Xie & Yupu Lu & Junbo Sun & Chenghong Gu & Jilai Yu, 2016. "Optimal Operation of Network-Connected Combined Heat and Powers for Customer Profit Maximization," Energies, MDPI, Open Access Journal, vol. 9(6), pages 1-17, June.
    10. repec:eee:appene:v:205:y:2017:i:c:p:345-368 is not listed on IDEAS


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:12:p:7950-7962. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.