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Optimal combined long-term facility design and short-term operational strategy for CHP capacity investments

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  • Mojica, Jose L.
  • Petersen, Damon
  • Hansen, Brigham
  • Powell, Kody M.
  • Hedengren, John D.

Abstract

This work presents a detailed case study for the optimization of the expansion of a district energy system evaluating the investment decision timing, type of capacity expansion, and fine-scale operational modes. The study develops an optimization framework to find the investment schedule over 30 years with options of investing in traditional heating sources (boilers) or a next-generation combined heat and power (CHP) plant that provides heat and electricity. In district energy systems, the selected capacity and type of system is dependent on demand-side requirements, energy prices, and environmental costs. This work formulates capacity planning over a time horizon as a dynamic optimal control problem considering both operational modes and capital investment decisions. The initial plant is modified by the dynamic optimization throughout the 30 years to maximize profitability. The combined optimal controller and capital investment planner solves a large scale mixed integer nonlinear programming problem to provide the timing and size of the capacity investment (30 year outlook) and also guidance on the mode of operation (1 h time intervals). The optimizer meets optimal economic, environmental, and regulatory constraints with the suggested design and operational guidance with daily cyclical load following of heat and electricity demand.

Suggested Citation

  • Mojica, Jose L. & Petersen, Damon & Hansen, Brigham & Powell, Kody M. & Hedengren, John D., 2017. "Optimal combined long-term facility design and short-term operational strategy for CHP capacity investments," Energy, Elsevier, vol. 118(C), pages 97-115.
    • Handle: RePEc:eee:energy:v:118:y:2017:i:c:p:97-115
    DOI: 10.1016/j.energy.2016.12.009
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    Cited by:

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    2. Oliver Gregor Gorbach & Noha Saad Hussein & Jessica Thomsen, 2021. "Impact of Internal Carbon Prices on the Energy System of an Organisation’s Facilities in Germany, Japan and the United Kingdom Compared to Potential External Carbon Prices," Energies, MDPI, vol. 14(14), pages 1-41, July.
    3. Evgeny Lisin & Daria Shuvalova & Irina Volkova & Wadim Strielkowski, 2018. "Sustainable Development of Regional Power Systems and the Consumption of Electric Energy," Sustainability, MDPI, vol. 10(4), pages 1-10, April.
    4. Liu, Zuming & Zhao, Yingru & Wang, Xiaonan, 2020. "Long-term economic planning of combined cooling heating and power systems considering energy storage and demand response," Applied Energy, Elsevier, vol. 279(C).
    5. Jiajia Li & Jinfu Liu & Peigang Yan & Xingshuo Li & Guowen Zhou & Daren Yu, 2021. "Operation Optimization of Integrated Energy System under a Renewable Energy Dominated Future Scene Considering Both Independence and Benefit: A Review," Energies, MDPI, vol. 14(4), pages 1-36, February.
    6. Oliver Gregor Gorbach & Jessica Thomsen, 2022. "Comparing the Energy System of a Facility with Uncertainty about Future Internal Carbon Prices and Energy Carrier Costs Using Deterministic Optimisation and Two-Stage Stochastic Programming," Energies, MDPI, vol. 15(10), pages 1-39, May.
    7. Krzysztof Karpio & Piotr Łukasiewicz & Rafik Nafkha, 2023. "New Method of Modeling Daily Energy Consumption," Energies, MDPI, vol. 16(5), pages 1-24, February.
    8. Rafik Nafkha & Tomasz Ząbkowski & Krzysztof Gajowniczek, 2021. "Deep Learning-Based Approaches to Optimize the Electricity Contract Capacity Problem for Commercial Customers," Energies, MDPI, vol. 14(8), pages 1-17, April.

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