Operation Optimization of a Combined Heat and Power Plant Integrated with Flexibility Retrofits in the Electricity Market

Enhancing the load-adjustment flexibility of combined heat and power units facilitates the integration of renewable energy and enhances their profitability in dynamic electricity markets. However, the optimal coordination of various retrofitted combined heat and power units to maximize profitability has not been thoroughly investigated. To address this gap, this study conducts thermodynamic analysis and operation optimization for a combined heat and power plant integrated with flexibility retrofits, by developing models for the extraction-condensing unit, high back-pressure retrofitted unit, and low-pressure turbine zero output retrofitted unit. Results show that the low-pressure turbine zero output retrofitted unit achieves the largest energy efficiency (90.7%), while the extraction-condensing unit attains the highest exergy efficiency (38.0%). A plant-level optimization model is proposed to maximize profitability, demonstrating that the retrofitted combined heat and power plant increases total profit by 8.1% (CNY 86.4 million) compared to the original plant (CNY 79.9 million). The profit improvement stems from reduced coal consumption and enhanced heating capacity, enabling better power generation optimization. Furthermore, the study evaluates the profitability under different retrofit combinations. The findings reveal that an optimal profit can be achieved by reasonably coordinating the energy-saving characteristics of high back-pressure units, the heat supply capacity of low-pressure turbine zero output units, and the flexible adjustment capability of extraction-condensing units.