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

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  • 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.

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  • 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
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    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).
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    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.
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