IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v169y2019icp420-432.html
   My bibliography  Save this article

Economic feasibility of combined cooling, heating, and power (CCHP) systems considering electricity standby tariffs

Author

Listed:
  • Ahn, Hyeunguk
  • Freihaut, James D.
  • Rim, Donghyun

Abstract

This study examines economic viability of combined cooling, heating, and power (CCHP) systems when applied to the Department of Energy (DOE) reference large office building in three locales in the U.S.: San Francisco, Boston, and Miami. For realistic power generation unit (PGU) sizes, annual, monthly, and hourly operation costs are estimated using local utility tariffs and compared to those of conventional separate heat and power systems. The results show that compared to conventional systems, CCHP systems reduce operation cost by 0.11–0.42 million $/y in San Francisco and Boston, whereas they increase the cost by 0.16–0.29 million $/y in Miami. The cost savings are mainly attributed to electricity savings; therefore, be maintained unless electricity costs drastically decrease. Considerable cost savings are attributed to both energy and demand charges if tariff structures estimate demand charges as much as energy charges (e.g., San Francisco). Under time-of-use rates, the largest cost saving occurs during peak periods because of high utilization of PGUs that significantly reduces energy and demand charges. Although a larger PGU capacity yields a greater cost saving, an over-sized PGU decrease profitability. The results suggest that for regions with relatively expensive natural gas and low electricity cost, CCHP systems would not be profitable.

Suggested Citation

  • Ahn, Hyeunguk & Freihaut, James D. & Rim, Donghyun, 2019. "Economic feasibility of combined cooling, heating, and power (CCHP) systems considering electricity standby tariffs," Energy, Elsevier, vol. 169(C), pages 420-432.
    • Handle: RePEc:eee:energy:v:169:y:2019:i:c:p:420-432
    DOI: 10.1016/j.energy.2018.11.126
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544218323375
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2018.11.126?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Zheng, C.Y. & Wu, J.Y. & Zhai, X.Q., 2014. "A novel operation strategy for CCHP systems based on minimum distance," Applied Energy, Elsevier, vol. 128(C), pages 325-335.
    2. Xiaolei Wang & Boqiang Lin, 2017. "Electricity subsidy reform in China," Energy & Environment, , vol. 28(3), pages 245-262, May.
    3. 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.
    4. Donghyun Rim & Stefano Schiavon & William W Nazaroff, 2015. "Energy and Cost Associated with Ventilating Office Buildings in a Tropical Climate," PLOS ONE, Public Library of Science, vol. 10(3), pages 1-14, March.
    5. Wang, Jiang-Jiang & Jing, You-Yin & Zhang, Chun-Fa, 2010. "Optimization of capacity and operation for CCHP system by genetic algorithm," Applied Energy, Elsevier, vol. 87(4), pages 1325-1335, April.
    6. Badami, M. & Mura, M. & Campanile, P. & Anzioso, F., 2008. "Design and performance evaluation of an innovative small scale combined cycle cogeneration system," Energy, Elsevier, vol. 33(8), pages 1264-1276.
    7. Eric W. T. Ngai & Angappa Gunasekaran & Samuel Fosso Wamba & Shahriar Akter & Rameshwar Dubey, 2017. "Big data analytics in electronic markets," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(3), pages 243-245, August.
    8. Ahn, Hyeunguk & Rim, Donghyun & Freihaut, James D., 2018. "Performance assessment of hybrid chiller systems for combined cooling, heating and power production," Applied Energy, Elsevier, vol. 225(C), pages 501-512.
    9. Li, Longxi & Mu, Hailin & Gao, Weijun & Li, Miao, 2014. "Optimization and analysis of CCHP system based on energy loads coupling of residential and office buildings," Applied Energy, Elsevier, vol. 136(C), pages 206-216.
    10. 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.
    11. Liu, Mingxi & Shi, Yang & Fang, Fang, 2013. "Optimal power flow and PGU capacity of CCHP systems using a matrix modeling approach," Applied Energy, Elsevier, vol. 102(C), pages 794-802.
    12. Ruan, Yingjun & Liu, Qingrong & Zhou, Weiguo & Firestone, Ryan & Gao, Weijun & Watanabe, Toshiyuki, 2009. "Optimal option of distributed generation technologies for various commercial buildings," Applied Energy, Elsevier, vol. 86(9), pages 1641-1653, September.
    13. Barbieri, Enrico Saverio & Melino, Francesco & Morini, Mirko, 2012. "Influence of the thermal energy storage on the profitability of micro-CHP systems for residential building applications," Applied Energy, Elsevier, vol. 97(C), pages 714-722.
    14. Wang, Jiangjiang & Yang, Ying & Mao, Tianzhi & Sui, Jun & Jin, Hongguang, 2015. "Life cycle assessment (LCA) optimization of solar-assisted hybrid CCHP system," Applied Energy, Elsevier, vol. 146(C), pages 38-52.
    15. Cho, Heejin & Mago, Pedro J. & Luck, Rogelio & Chamra, Louay M., 2009. "Evaluation of CCHP systems performance based on operational cost, primary energy consumption, and carbon dioxide emission by utilizing an optimal operation scheme," Applied Energy, Elsevier, vol. 86(12), pages 2540-2549, December.
    16. Pearce, J.M., 2009. "Expanding photovoltaic penetration with residential distributed generation from hybrid solar photovoltaic and combined heat and power systems," Energy, Elsevier, vol. 34(11), pages 1947-1954.
    17. Liu, Mingxi & Shi, Yang & Fang, Fang, 2012. "A new operation strategy for CCHP systems with hybrid chillers," Applied Energy, Elsevier, vol. 95(C), pages 164-173.
    18. Zheng, C.Y. & Wu, J.Y. & Zhai, X.Q. & Wang, R.Z., 2016. "Impacts of feed-in tariff policies on design and performance of CCHP system in different climate zones," Applied Energy, Elsevier, vol. 175(C), pages 168-179.
    19. Moya, M. & Bruno, J.C. & Eguia, P. & Torres, E. & Zamora, I. & Coronas, A., 2011. "Performance analysis of a trigeneration system based on a micro gas turbine and an air-cooled, indirect fired, ammonia–water absorption chiller," Applied Energy, Elsevier, vol. 88(12), pages 4424-4440.
    20. Siler-Evans, Kyle & Morgan, M. Granger & Azevedo, Inês Lima, 2012. "Distributed cogeneration for commercial buildings: Can we make the economics work?," Energy Policy, Elsevier, vol. 42(C), pages 580-590.
    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. Chen, Xiaoyuan & Chen, Yu & Zhang, Mingshun & Jiang, Shan & Gou, Huayu & Pang, Zhou & Shen, Boyang, 2021. "Hospital-oriented quad-generation (HOQG)—A combined cooling, heating, power and gas (CCHPG) system," Applied Energy, Elsevier, vol. 300(C).
    2. Okada, Masaki & Onishi, Terumi & Obara, Shin’ya, 2020. "A design algorithm for an electric power system using wide-area interconnection of renewable energy," Energy, Elsevier, vol. 193(C).
    3. Andrés Villarruel-Jaramillo & Manuel Pérez-García & José M. Cardemil & Rodrigo A. Escobar, 2021. "Review of Polygeneration Schemes with Solar Cooling Technologies and Potential Industrial Applications," Energies, MDPI, vol. 14(20), pages 1-30, October.
    4. Teng, Jiaying & Wang, Wan & Mu, Xiaofei, 2020. "A novel economic analyzing method for CCHP systems based on energy cascade utilization," Energy, Elsevier, vol. 207(C).
    5. Ghersi, Djamal Eddine & Amoura, Meriem & Loubar, Khaled & Desideri, Umberto & Tazerout, Mohand, 2021. "Multi-objective optimization of CCHP system with hybrid chiller under new electric load following operation strategy," Energy, Elsevier, vol. 219(C).
    6. Pina, Eduardo A. & Lozano, Miguel A. & Ramos, José C. & Serra, Luis M., 2020. "Tackling thermal integration in the synthesis of polygeneration systems for buildings," Applied Energy, Elsevier, vol. 269(C).
    7. Shen, Boyang & Chen, Yu & Li, Chuanyue & Wang, Sheng & Chen, Xiaoyuan, 2021. "Superconducting fault current limiter (SFCL): Experiment and the simulation from finite-element method (FEM) to power/energy system software," Energy, Elsevier, vol. 234(C).
    8. Song, Zhihui & Liu, Tao & Lin, Qizhao, 2020. "Multi-objective optimization of a solar hybrid CCHP system based on different operation modes," Energy, Elsevier, vol. 206(C).
    9. Dai, Yiru & Zeng, Yipu, 2022. "Optimization of CCHP integrated with multiple load, replenished energy, and hybrid storage in different operation modes," Energy, Elsevier, vol. 260(C).
    10. Xiaolin Chu & Dong Yang & Jia Li, 2019. "Sustainability Assessment of Combined Cooling, Heating, and Power Systems under Carbon Emission Regulations," Sustainability, MDPI, vol. 11(21), pages 1-17, October.
    11. Yidan Song & Qiaoqun Sun & Yu Zhang & Yaodong Da & Heming Dong & Hebo Zhang & Qian Du & Jianmin Gao, 2023. "Modeling and Optimization of Natural Gas CCHP System in the Severe Cold Region," Energies, MDPI, vol. 16(12), pages 1-18, June.
    12. Ahn, Hyeunguk & Miller, William & Sheaffer, Paul & Tutterow, Vestal & Rapp, Vi, 2021. "Opportunities for installed combined heat and power (CHP) to increase grid flexibility in the U.S," Energy Policy, Elsevier, vol. 157(C).
    13. Hyeunguk Ahn & Jingjing Liu & Donghun Kim & Rongxin Yin & Tianzhen Hong & Mary Ann Piette, 2021. "How Can Floor Covering Influence Buildings’ Demand Flexibility?," Energies, MDPI, vol. 14(12), pages 1-17, June.
    14. Wang, Xuan & Shu, Gequn & Tian, Hua & Wang, Rui & Cai, Jinwen, 2020. "Dynamic performance comparison of different cascade waste heat recovery systems for internal combustion engine in combined cooling, heating and power," Applied Energy, Elsevier, vol. 260(C).

    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. Ahn, Hyeunguk & Rim, Donghyun & Freihaut, James D., 2018. "Performance assessment of hybrid chiller systems for combined cooling, heating and power production," Applied Energy, Elsevier, vol. 225(C), pages 501-512.
    2. Li, Longxi & Mu, Hailin & Gao, Weijun & Li, Miao, 2014. "Optimization and analysis of CCHP system based on energy loads coupling of residential and office buildings," Applied Energy, Elsevier, vol. 136(C), pages 206-216.
    3. Han, Jie & Ouyang, Leixin & Xu, Yuzhen & Zeng, Rong & Kang, Shushuo & Zhang, Guoqiang, 2016. "Current status of distributed energy system in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 288-297.
    4. Das, Barun K. & Al-Abdeli, Yasir M. & Kothapalli, Ganesh, 2018. "Effect of load following strategies, hardware, and thermal load distribution on stand-alone hybrid CCHP systems," Applied Energy, Elsevier, vol. 220(C), pages 735-753.
    5. Wang, Jiangjiang & Sui, Jun & Jin, Hongguang, 2015. "An improved operation strategy of combined cooling heating and power system following electrical load," Energy, Elsevier, vol. 85(C), pages 654-666.
    6. Jradi, M. & Riffat, S., 2014. "Tri-generation systems: Energy policies, prime movers, cooling technologies, configurations and operation strategies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 396-415.
    7. 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.
    8. Ghersi, Djamal Eddine & Amoura, Meriem & Loubar, Khaled & Desideri, Umberto & Tazerout, Mohand, 2021. "Multi-objective optimization of CCHP system with hybrid chiller under new electric load following operation strategy," Energy, Elsevier, vol. 219(C).
    9. Li, Longxi & Yu, Shiwei & Mu, Hailin & Li, Huanan, 2018. "Optimization and evaluation of CCHP systems considering incentive policies under different operation strategies," Energy, Elsevier, vol. 162(C), pages 825-840.
    10. Liu, Mingxi & Shi, Yang & Fang, Fang, 2014. "Combined cooling, heating and power systems: A survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 1-22.
    11. Wang, Jiangjiang & Yang, Ying & Mao, Tianzhi & Sui, Jun & Jin, Hongguang, 2015. "Life cycle assessment (LCA) optimization of solar-assisted hybrid CCHP system," Applied Energy, Elsevier, vol. 146(C), pages 38-52.
    12. Guozheng Li & Rui Wang & Tao Zhang & Mengjun Ming, 2018. "Multi-Objective Optimal Design of Renewable Energy Integrated CCHP System Using PICEA-g," Energies, MDPI, vol. 11(4), pages 1-26, March.
    13. Chen, W.D. & Chua, K.J., 2022. "A novel and optimized operation strategy map for CCHP systems considering optimal thermal energy utilization," Energy, Elsevier, vol. 259(C).
    14. Wei, Dajun & Chen, Alian & Sun, Bo & Zhang, Chenghui, 2016. "Multi-objective optimal operation and energy coupling analysis of combined cooling and heating system," Energy, Elsevier, vol. 98(C), pages 296-307.
    15. Hou, Hongjuan & Wu, Jiwen & Ding, Zeyu & Yang, Bo & Hu, Eric, 2021. "Performance analysis of a solar-assisted combined cooling, heating and power system with an improved operation strategy," Energy, Elsevier, vol. 227(C).
    16. Tao Zhang & Minli Wang & Peihong Wang & Junyu Liang, 2020. "Optimal Design of a Combined Cooling, Heating, and Power System and Its Ability to Adapt to Uncertainty," Energies, MDPI, vol. 13(14), pages 1-17, July.
    17. Wang, Jiangjiang & Lu, Yanchao & Yang, Ying & Mao, Tianzhi, 2016. "Thermodynamic performance analysis and optimization of a solar-assisted combined cooling, heating and power system," Energy, Elsevier, vol. 115(P1), pages 49-59.
    18. Hu, Mengqi & Cho, Heejin, 2014. "A probability constrained multi-objective optimization model for CCHP system operation decision support," Applied Energy, Elsevier, vol. 116(C), pages 230-242.
    19. Li, Miao & Mu, Hailin & Li, Nan & Ma, Baoyu, 2016. "Optimal design and operation strategy for integrated evaluation of CCHP (combined cooling heating and power) system," Energy, Elsevier, vol. 99(C), pages 202-220.
    20. Afzali, Sayyed Faridoddin & Mahalec, Vladimir, 2018. "Novel performance curves to determine optimal operation of CCHP systems," Applied Energy, Elsevier, vol. 226(C), pages 1009-1036.

    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:energy:v:169:y:2019:i:c:p:420-432. 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.journals.elsevier.com/energy .

    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.