IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v39y2011i12p7950-7962.html
   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

Author

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

Abstract

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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511007397
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2011.09.050?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    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. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. Badescu, Viorel, 2007. "Economic aspects of using ground thermal energy for passive house heating," Renewable Energy, Elsevier, vol. 32(6), pages 895-903.
    15. Marbe, Âsa & Harvey, Simon & Berntsson, Thore, 2006. "Technical, environmental and economic analysis of co-firing of gasified biofuel in a natural gas combined cycle (NGCC) combined heat and power (CHP) plant," Energy, Elsevier, vol. 31(10), pages 1614-1631.
    16. 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.
    17. 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.
    18. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Xiangli Li & Haichao Wang & Xiaozhou Wu & Lin Duanmu & Esa Teppo & Risto Lahdelma & Ji Li & Li Yu, 2020. "Analysis on the Thermal Balance and Operational Parameters for the District Heating System with Peak Load Boilers in Heating Substations," Energies, MDPI, vol. 13(23), pages 1-16, November.
    2. 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.
    3. Fu, D.Z. & Zheng, Z.Y. & Shi, H.B. & Xiao, Rui & Huang, G.H. & Li, Y.P., 2017. "A multi-fuel management model for a community-level district heating system under multiple uncertainties," Energy, Elsevier, vol. 128(C), pages 337-356.
    4. Danica Djurić Ilić, 2020. "Classification of Measures for Dealing with District Heating Load Variations—A Systematic Review," Energies, MDPI, vol. 14(1), pages 1-27, December.
    5. 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.
    6. Wesselink, Maxim & Liu, Wen & Koornneef, Joris & van den Broek, Machteld, 2018. "Conceptual market potential framework of high temperature aquifer thermal energy storage - A case study in the Netherlands," Energy, Elsevier, vol. 147(C), pages 477-489.
    7. Golmohamadi, Hessam & Larsen, Kim Guldstrand & Jensen, Peter Gjøl & Hasrat, Imran Riaz, 2022. "Integration of flexibility potentials of district heating systems into electricity markets: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    8. 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.
    9. 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.
    10. Haichao Wang & Lin Duanmu & Xiangli Li & Risto Lahdelma, 2017. "Optimizing the District Heating Primary Network from the Perspective of Economic-Specific Pressure Loss," Energies, MDPI, vol. 10(8), pages 1-12, July.
    11. 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.
    12. 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.
    13. 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, vol. 9(6), pages 1-17, June.
    14. Shifei Zhao & Weishu Wang & Zhihua Ge, 2020. "Energy and Exergy Evaluations of a Combined Heat and Power System with a High Back-Pressure Turbine under Full Operating Conditions," Energies, MDPI, vol. 13(17), pages 1-18, August.
    15. Wang, Haichao & Duanmu, Lin & Lahdelma, Risto & Li, Xiangli, 2017. "Developing a multicriteria decision support framework for CHP based combined district heating systems," Applied Energy, Elsevier, vol. 205(C), pages 345-368.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Haichao & Duanmu, Lin & Lahdelma, Risto & Li, Xiangli, 2017. "Developing a multicriteria decision support framework for CHP based combined district heating systems," Applied Energy, Elsevier, vol. 205(C), pages 345-368.
    2. Keçebaş, Ali & Alkan, Mehmet Ali & Yabanova, İsmail & Yumurtacı, Mehmet, 2013. "Energetic and economic evaluations of geothermal district heating systems by using ANN," Energy Policy, Elsevier, vol. 56(C), pages 558-567.
    3. Rong, Aiying & Lahdelma, Risto & Luh, Peter B., 2008. "Lagrangian relaxation based algorithm for trigeneration planning with storages," European Journal of Operational Research, Elsevier, vol. 188(1), pages 240-257, July.
    4. 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.
    5. Giuseppe Pinto & Elnaz Abdollahi & Alfonso Capozzoli & Laura Savoldi & Risto Lahdelma, 2019. "Optimization and Multicriteria Evaluation of Carbon-neutral Technologies for District Heating," Energies, MDPI, vol. 12(9), pages 1-19, April.
    6. Tian, Zhe & Niu, Jide & Lu, Yakai & He, Shunming & Tian, Xue, 2016. "The improvement of a simulation model for a distributed CCHP system and its influence on optimal operation cost and strategy," Applied Energy, Elsevier, vol. 165(C), pages 430-444.
    7. Rong, Aiying & Lahdelma, Risto & Grunow, Martin, 2009. "An improved unit decommitment algorithm for combined heat and power systems," European Journal of Operational Research, Elsevier, vol. 195(2), pages 552-562, June.
    8. Rong, Aiying & Hakonen, Henri & Lahdelma, Risto, 2008. "A variant of the dynamic programming algorithm for unit commitment of combined heat and power systems," European Journal of Operational Research, Elsevier, vol. 190(3), pages 741-755, November.
    9. Salta, Myrsine & Polatidis, Heracles & Haralambopoulos, Dias, 2011. "Industrial combined heat and power (CHP) planning: Development of a methodology and application in Greece," Applied Energy, Elsevier, vol. 88(5), pages 1519-1531, May.
    10. Rong, Aiying & Lahdelma, Risto, 2016. "Role of polygeneration in sustainable energy system development challenges and opportunities from optimization viewpoints," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 363-372.
    11. Rong, Aiying & Lahdelma, Risto, 2017. "An efficient model and algorithm for the transmission-constrained multi-site combined heat and power system," European Journal of Operational Research, Elsevier, vol. 258(3), pages 1106-1117.
    12. Jiang-Jiang, Wang & Chun-Fa, Zhang & You-Yin, Jing, 2010. "Multi-criteria analysis of combined cooling, heating and power systems in different climate zones in China," Applied Energy, Elsevier, vol. 87(4), pages 1247-1259, April.
    13. Rong, Aiying & Lahdelma, Risto, 2007. "CO2 emissions trading planning in combined heat and power production via multi-period stochastic optimization," European Journal of Operational Research, Elsevier, vol. 176(3), pages 1874-1895, February.
    14. Wang, Jiangjiang & Zhai, Zhiqiang (John) & Jing, Youyin & Zhang, Chunfa, 2010. "Particle swarm optimization for redundant building cooling heating and power system," Applied Energy, Elsevier, vol. 87(12), pages 3668-3679, December.
    15. 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.
    16. Monteiro, Eliseu & Moreira, Nuno Afonso & Ferreira, Sérgio, 2009. "Planning of micro-combined heat and power systems in the Portuguese scenario," Applied Energy, Elsevier, vol. 86(3), pages 290-298, March.
    17. Wang, Jiang-Jiang & Jing, You-Yin & Zhang, Chun-Fa & Zhai, Zhiqiang (John), 2011. "Performance comparison of combined cooling heating and power system in different operation modes," Applied Energy, Elsevier, vol. 88(12), pages 4621-4631.
    18. Kumbartzky, Nadine & Schacht, Matthias & Schulz, Katrin & Werners, Brigitte, 2017. "Optimal operation of a CHP plant participating in the German electricity balancing and day-ahead spot market," European Journal of Operational Research, Elsevier, vol. 261(1), pages 390-404.
    19. Wang, Haichao & Yin, Wusong & Abdollahi, Elnaz & Lahdelma, Risto & Jiao, Wenling, 2015. "Modelling and optimization of CHP based district heating system with renewable energy production and energy storage," Applied Energy, Elsevier, vol. 159(C), pages 401-421.
    20. Shen, Yung-Chi & Lin, Grace T.R. & Li, Kuang-Pin & Yuan, Benjamin J.C., 2010. "An assessment of exploiting renewable energy sources with concerns of policy and technology," Energy Policy, Elsevier, vol. 38(8), pages 4604-4616, August.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    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.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.