Cost-optimized real-time operation of CHP systems

The Cooling, Heating, and Power (CHP) systems have been widely recognized as a key alternative for thermal and electric energy generation because of the outstanding energy efficiency, reduced environmental emissions, and relative independence from centralized power grids. Nevertheless, the total energy cost of CHP systems can be highly dependent on the operation of individual components. This paper presents an energy dispatch algorithm that minimizes the cost of energy (e.g., cost of electricity from the grid and cost of natural gas into the engine and boiler) based on energy efficiency constrains for each component. A deterministic network flow model of a typical CHP system is developed as part of the algorithm. The advantage of using a network flow model is that the electric and thermal energy flows through the CHP equipment can be readily visualized allowing for easier interpretation of the results. This algorithm has been used in simulations of a case study on the operation of an existing micro-CHP system. The results from the simulation are presented in the paper to demonstrate the economical advantages resulting from optimal operation.