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Optimal planning and economic evaluation of cogeneration system

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  • Oh, Si-Doek
  • Lee, Ho-Jun
  • Jung, Jung-Yeul
  • Kwak, Ho-Young

Abstract

Cogeneration plants, which simultaneously produce electricity and heat energy, have been introduced increasingly for commercial and domestic applications in Korea because of their energy efficiency. The optimal plant configuration of a specific commercial building can be determined by selecting the sizes and the number of cogeneration systems and the auxiliary equipment based on the annual demands of electricity, heating and cooling. In this study, a mixed-integer, linear programming, utilizing the branch and bound algorithm was used to obtain the optimal solution. Both the optimal configuration system equipment and the optimal operational mode were determined based on the annual cost method for the installation of a cogeneration system to a hospital and a group of apartments in Seoul, Korea. In addition, the economic evaluation for the optimal cogeneration system depending on the fuel tariff system was calculated. A short payback period and higher internal rate of return on the initial investment were found to be essential for the adoption of cogeneration plants to hospitals and apartments.

Suggested Citation

  • Oh, Si-Doek & Lee, Ho-Jun & Jung, Jung-Yeul & Kwak, Ho-Young, 2007. "Optimal planning and economic evaluation of cogeneration system," Energy, Elsevier, vol. 32(5), pages 760-771.
    • Handle: RePEc:eee:energy:v:32:y:2007:i:5:p:760-771
    DOI: 10.1016/j.energy.2006.05.007
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