IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v148y2018icp283-295.html
   My bibliography  Save this article

A systematic approach to evaluate the economic viability of Combined Cooling Heating and Power systems over conventional technologies

Author

Listed:
  • Tataraki, Kalliopi G.
  • Kavvadias, Konstantinos C.
  • Maroulis, Zacharias B.

Abstract

This paper presents an analytical methodology of evaluating the economic viability of a CCHP system, over three alternative configurations: (1) boiler and electric chiller, which have been extendedly analyzed in literature, (2) boiler and gas driven absorption chiller and (3) reversible heat pump, which have been slightly investigated in comparison with CCHP systems. An adjusted Levelized Cost of Electricity (LCOE) is defined for those cases and used as a decision-making criterion. A sensitivity analysis is carried out to explore the effect of technical and economic data and load characteristics on the LCOE. The viability of the CCHP system is determined by comparing the LCOE with the electricity market prices. Two different economic viability problems are considered: (1) investing viability for new CCHP systems, and (2) operating viability for existing CCHP systems. The results demonstrate interesting interactions and encouraging perspectives, especially when CCHP system is used in combination with conventional technologies like boilers and chillers.

Suggested Citation

  • Tataraki, Kalliopi G. & Kavvadias, Konstantinos C. & Maroulis, Zacharias B., 2018. "A systematic approach to evaluate the economic viability of Combined Cooling Heating and Power systems over conventional technologies," Energy, Elsevier, vol. 148(C), pages 283-295.
    • Handle: RePEc:eee:energy:v:148:y:2018:i:c:p:283-295
    DOI: 10.1016/j.energy.2018.01.107
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544218301257
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2018.01.107?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. Santin, Marco & Traverso, Alberto & Magistri, Loredana & Massardo, Aristide, 2010. "Thermoeconomic analysis of SOFC-GT hybrid systems fed by liquid fuels," Energy, Elsevier, vol. 35(2), pages 1077-1083.
    2. Mundada, Aishwarya S. & Shah, Kunal K. & Pearce, J.M., 2016. "Levelized cost of electricity for solar photovoltaic, battery and cogen hybrid systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 692-703.
    3. Frangopoulos, Christos A., 2012. "A method to determine the power to heat ratio, the cogenerated electricity and the primary energy savings of cogeneration systems after the European Directive," Energy, Elsevier, vol. 45(1), pages 52-61.
    4. Di Fraia, S. & Massarotti, N. & Vanoli, L. & Costa, M., 2016. "Thermo-economic analysis of a novel cogeneration system for sewage sludge treatment," Energy, Elsevier, vol. 115(P3), pages 1560-1571.
    5. Larsson, Simon & Fantazzini, Dean & Davidsson, Simon & Kullander, Sven & Höök, Mikael, 2014. "Reviewing electricity production cost assessments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 170-183.
    6. Kang, Jun Young & Kang, Do Won & Kim, Tong Seop & Hur, Kwang Beom, 2014. "Comparative economic analysis of gas turbine-based power generation and combined heat and power systems using biogas fuel," Energy, Elsevier, vol. 67(C), pages 309-318.
    7. Al-Mansour, Fouad & Kožuh, Mitja, 2007. "Risk analysis for CHP decision making within the conditions of an open electricity market," Energy, Elsevier, vol. 32(10), pages 1905-1916.
    8. González-Pino, I. & Pérez-Iribarren, E. & Campos-Celador, A. & Las-Heras-Casas, J. & Sala, J.M., 2015. "Influence of the regulation framework on the feasibility of a Stirling engine-based residential micro-CHP installation," Energy, Elsevier, vol. 84(C), pages 575-588.
    9. Martínez-Lera, S. & Ballester, J., 2010. "A novel method for the design of CHCP (combined heat, cooling and power) systems for buildings," Energy, Elsevier, vol. 35(7), pages 2972-2984.
    10. Kavvadias, K.C., 2016. "Energy price spread as a driving force for combined generation investments: A view on Europe," Energy, Elsevier, vol. 115(P3), pages 1632-1639.
    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. Carpaneto, Enrico & Chicco, Gianfranco & Mancarella, Pierluigi & Russo, Angela, 2011. "Cogeneration planning under uncertainty. Part II: Decision theory-based assessment of planning alternatives," Applied Energy, Elsevier, vol. 88(4), pages 1075-1083, April.
    13. Comodi, Gabriele & Rossi, Mosè, 2016. "Energy versus economic effectiveness in CHP (combined heat and power) applications: Investigation on the critical role of commodities price, taxation and power grid mix efficiency," Energy, Elsevier, vol. 109(C), pages 124-136.
    14. Palzer, Andreas & Westner, Günther & Madlener, Reinhard, 2013. "Evaluation of different hedging strategies for commodity price risks of industrial cogeneration plants," Energy Policy, Elsevier, vol. 59(C), pages 143-160.
    15. Smith, Amanda D. & Fumo, Nelson & Mago, Pedro J., 2011. "Spark spread - A screening parameter for combined heating and power systems," Applied Energy, Elsevier, vol. 88(5), pages 1494-1499, May.
    16. Knizley, Alta A. & Mago, Pedro J. & Smith, Amanda D., 2014. "Evaluation of the performance of combined cooling, heating, and power systems with dual power generation units," Energy Policy, Elsevier, vol. 66(C), pages 654-665.
    17. Badami, M. & Camillieri, F. & Portoraro, A. & Vigliani, E., 2014. "Energetic and economic assessment of cogeneration plants: A comparative design and experimental condition study," Energy, Elsevier, vol. 71(C), pages 255-262.
    18. Ferrari, Mario L. & Traverso, Alberto & Massardo, Aristide F., 2016. "Smart polygeneration grids: experimental performance curves of different prime movers," Applied Energy, Elsevier, vol. 162(C), pages 622-630.
    19. Westner, Günther & Madlener, Reinhard, 2011. "Development of cogeneration in Germany: A mean-variance portfolio analysis of individual technology’s prospects in view of the new regulatory framework," Energy, Elsevier, vol. 36(8), pages 5301-5313.
    20. Ersoz, Ibrahim & Colak, Uner, 2016. "Combined cooling, heat and power planning under uncertainty," Energy, Elsevier, vol. 109(C), pages 1016-1025.
    21. 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. Aikaterini Papadimitriou & Anastasios Tosios & Eugenia Giannini, 2021. "Techno-Economic Performance Assessment of a Trigeneration System Operating in a Hospital," Energies, MDPI, vol. 14(16), pages 1-21, August.
    3. Golpîra, Hêriş & Khan, Syed Abdul Rehman, 2019. "A multi-objective risk-based robust optimization approach to energy management in smart residential buildings under combined demand and supply uncertainty," Energy, Elsevier, vol. 170(C), pages 1113-1129.
    4. Chen, Yue & Wei, Wei & Liu, Feng & Shafie-khah, Miadreza & Mei, Shengwei & Catalão, João P.S., 2018. "Optimal contracts of energy mix in a retail market under asymmetric information," Energy, Elsevier, vol. 165(PB), pages 634-650.
    5. Tataraki, Kalliopi G. & Kavvadias, Konstantinos C. & Maroulis, Zacharias B., 2019. "Combined cooling heating and power systems in greenhouses. Grassroots and retrofit design," Energy, Elsevier, vol. 189(C).
    6. Wiesberg, Igor Lapenda & de Medeiros, José Luiz & Paes de Mello, Raphael V. & Santos Maia, Jeiveison G.S. & Bastos, João Bruno V. & Araújo, Ofélia de Queiroz F., 2021. "Bioenergy production from sugarcane bagasse with carbon capture and storage: Surrogate models for techno-economic decisions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    7. J. Villarroel-Schneider & Anders Malmquist & Joseph A. Araoz & J. Martí-Herrero & Andrew Martin, 2019. "Performance Analysis of a Small-Scale Biogas-Based Trigeneration Plant: An Absorption Refrigeration System Integrated to an Externally Fired Microturbine," Energies, MDPI, vol. 12(20), pages 1-30, October.
    8. Urbanucci, Luca & Bruno, Joan Carles & Testi, Daniele, 2019. "Thermodynamic and economic analysis of the integration of high-temperature heat pumps in trigeneration systems," Applied Energy, Elsevier, vol. 238(C), pages 516-533.
    9. Aikaterini Papadimitriou & Vassilios Vassiliou & Kalliopi Tataraki & Eugenia Giannini & Zacharias Maroulis, 2020. "Economic Assessment of Cogeneration Systems in Operation," Energies, MDPI, vol. 13(9), pages 1-15, May.
    10. Chen, Xiaoyuan & Jiang, Shan & Chen, Yu & Lei, Yi & Zhang, Donghui & Zhang, Mingshun & Gou, Huayu & Shen, Boyang, 2022. "A 10 MW class data center with ultra-dense high-efficiency energy distribution: Design and economic evaluation of superconducting DC busbar networks," Energy, Elsevier, vol. 250(C).
    11. 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).

    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. Antonio Piacentino & Roberto Gallea & Pietro Catrini & Fabio Cardona & Domenico Panno, 2016. "On the Reliability of Optimization Results for Trigeneration Systems in Buildings, in the Presence of Price Uncertainties and Erroneous Load Estimation," Energies, MDPI, vol. 9(12), pages 1-31, December.
    2. Capuder, Tomislav & Mancarella, Pierluigi, 2014. "Techno-economic and environmental modelling and optimization of flexible distributed multi-generation options," Energy, Elsevier, vol. 71(C), pages 516-533.
    3. Mancarella, Pierluigi, 2014. "MES (multi-energy systems): An overview of concepts and evaluation models," Energy, Elsevier, vol. 65(C), pages 1-17.
    4. Comodi, Gabriele & Rossi, Mosè, 2016. "Energy versus economic effectiveness in CHP (combined heat and power) applications: Investigation on the critical role of commodities price, taxation and power grid mix efficiency," Energy, Elsevier, vol. 109(C), pages 124-136.
    5. Espirito Santo, Denilson Boschiero do & Gallo, Waldyr Luiz Ribeiro, 2017. "Utilizing primary energy savings and exergy destruction to compare centralized thermal plants and cogeneration/trigeneration systems," Energy, Elsevier, vol. 120(C), pages 785-795.
    6. Ceglia, F. & Marrasso, E. & Pallotta, G. & Roselli, C. & Sasso, M., 2023. "Assessing the influence of time-dependent power grid efficiency indicators on primary energy savings and economic incentives for high-efficiency cogeneration," Energy, Elsevier, vol. 278(PB).
    7. Tataraki, Kalliopi G. & Kavvadias, Konstantinos C. & Maroulis, Zacharias B., 2019. "Combined cooling heating and power systems in greenhouses. Grassroots and retrofit design," Energy, Elsevier, vol. 189(C).
    8. Aikaterini Papadimitriou & Vassilios Vassiliou & Kalliopi Tataraki & Eugenia Giannini & Zacharias Maroulis, 2020. "Economic Assessment of Cogeneration Systems in Operation," Energies, MDPI, vol. 13(9), pages 1-15, May.
    9. Onishi, Viviani C. & Antunes, Carlos H. & Fraga, Eric S. & Cabezas, Heriberto, 2019. "Stochastic optimization of trigeneration systems for decision-making under long-term uncertainty in energy demands and prices," Energy, Elsevier, vol. 175(C), pages 781-797.
    10. Carpaneto, Enrico & Chicco, Gianfranco & Mancarella, Pierluigi & Russo, Angela, 2011. "Cogeneration planning under uncertainty: Part I: Multiple time frame approach," Applied Energy, Elsevier, vol. 88(4), pages 1059-1067, April.
    11. Ali, Babkir, 2018. "Comparative assessment of the feasibility for solar irrigation pumps in Sudan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 413-420.
    12. 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.
    13. Markovska, Natasa & Duić, Neven & Mathiesen, Brian Vad & Guzović, Zvonimir & Piacentino, Antonio & Schlör, Holger & Lund, Henrik, 2016. "Addressing the main challenges of energy security in the twenty-first century – Contributions of the conferences on Sustainable Development of Energy, Water and Environment Systems," Energy, Elsevier, vol. 115(P3), pages 1504-1512.
    14. Badami, M. & Camillieri, F. & Portoraro, A. & Vigliani, E., 2014. "Energetic and economic assessment of cogeneration plants: A comparative design and experimental condition study," Energy, Elsevier, vol. 71(C), pages 255-262.
    15. Ersoz, Ibrahim & Colak, Uner, 2016. "Combined cooling, heat and power planning under uncertainty," Energy, Elsevier, vol. 109(C), pages 1016-1025.
    16. Kavvadias, K.C., 2016. "Energy price spread as a driving force for combined generation investments: A view on Europe," Energy, Elsevier, vol. 115(P3), pages 1632-1639.
    17. Pavel Atănăsoae, 2018. "The Operating Strategies of Small-Scale Combined Heat and Power Plants in Liberalized Power Markets," Energies, MDPI, vol. 11(11), pages 1-16, November.
    18. Tamburini, A. & Cipollina, A. & Micale, G. & Piacentino, A., 2016. "CHP (combined heat and power) retrofit for a large MED-TVC (multiple effect distillation along with thermal vapour compression) desalination plant: high efficiency assessment for different design opti," Energy, Elsevier, vol. 115(P3), pages 1548-1559.
    19. Francesco Calise & Mário Costa & Qiuwang Wang & Xiliang Zhang & Neven Duić, 2018. "Recent Advances in the Analysis of Sustainable Energy Systems," Energies, MDPI, vol. 11(10), pages 1-30, September.
    20. Verbruggen, Aviel & Dewallef, Pierre & Quoilin, Sylvain & Wiggin, Michael, 2013. "Unveiling the mystery of Combined Heat & Power (cogeneration)," Energy, Elsevier, vol. 61(C), pages 575-582.

    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:148:y:2018:i:c:p:283-295. 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.