Combined Heat and Power Systems in Urban Commercial Building in China

The authors examined the current status and future possibilities of natural gas building combined heat and power (BCHP) systems in urban areas of China. The present state of penetration of BCHP systems, barriers to their penetration, and their future perspective are described. Three scenarios-using two conventional systems and a BCHP system-were assumed and compared to quantify the effect of BCHP. Cost, CO2 emission, and primary energy consumption were considered as evaluation indexes. The analysis employed a bottom-up approach, by which measured end-use demand data for an office building were put into a mathematical model. A sensitive analysis of natural gas price and subsidization of BCHP was also performed. These analyses revealed that 1) BCHP is cost-effective and provides considerable CO2 mitigation and energy conservation in urban areas of China, and 2) natural gas price reduction and subsidization of BCHP would be able to support the introduction of BCHP financially