Assessment and Enhancement of the Energy Supply System Efficiency with Emphasis on the Cogeneration and Renewable as Main Directions for Fuel Saving

Assessment and Enhancement of the Energy Supply System Efficiency with Emphasis on the Cogeneration and Renewable as Main Directions for Fuel Saving

S. V. Zharkov (Melentiev Energy Systems Institute, Siberian Branch of the Russian Academy of Sciences, Irkutsk, Russia)
Copyright: © 2014 |Pages: 20
DOI: 10.4018/ijeoe.2014100101
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Abstract

The paper presents methods for assessing economic, resource and environmental efficiency of cogeneration plants (CPs) and energy supply systems as a whole and ways of its improvement, the main of which are the development of cogeneration and renewable energy sources (RES). The problem of allocating fuel and financial costs at the combined production in accordance with the criterion of equal profitability of supplied energy products is solved. The methods allow determining specific indicators of supplied energy products. The technology of introducing RES-based power plants to the energy supply systems by means of using unstabilized RES-based power for direct fuel substitution in thermal cycles of gas-turbine (combined cycle) and steam-turbine plants (the wind is viewed as the most promising type of RES). Connection of wind power plants to an electric grid through thermal power plants allows us to avoid solving the problems of maintaining power quality and operating reserve of the wind power plants capacity in the power system and also to use wind energy at the plants of combined heat and high-quality electric power production, small ones included. The technology can promote smooth transition to hydrogen energy. It is shown that the cogeneration saves more than 20% of fuel, and its combination with wind power station – more than 50%.
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Introduction

To measures to reduce environmental pollution, save fuel, develop cogeneration, use renewable energy resources on a large scale, and assess their efficiency are very important (Jovanovic, Turanjanin, Bakic, Pezo & Vucicevic B, 2011; Pezzini, Gomis-Bellmunt & Sudrià-Andreu, 2011; Melentiev, 1987; Melentiev, 1993; Twidell & Weir 1990). Besides, cogeneration and wind power industry are the most significant technologies for saving fuel and reducing greenhouse gas emissions.

Russia and other countries apply methods for separation of fuel and financial costs in the energy sector mainly at cogeneration (combined heat and power production) plants (CPs) in order to assess their efficiency and fix heat and electricity tariffs (Alexanov, 1995; Arakelyan, Kozhevnikov & Kuznetsov, 2006; Gitelman & Ratnikov, 2008; Kharaim, 2003; Kuznetsov, 2006; Malafeev, Smirnov, Kharaim, Khrilev & Livshits, 2003; Melentiev, 1987; Melentiev, 1993; Padalko & Zaborovsky, 2006; Popyrin, Denisov & Svetlov, 1989; Semenov, 2002). The problem of interrelated pricing of electric and heat energy is especially urgent for the countries that consume a lot of fuel for heat supply and have a high share of CPs in their energy systems. However, in this case it appears to be important to pay more attention to the assessment of the overall efficiency of energy supply systems.

The issue of separating total costs of cogeneration is highly topical not only for the energy sector, but also for other branches of industry producing several types of products. Moreover, a great number of methods for separating costs are applied in the energy sector and industry.

Development of methods for separating costs at CPs leads in particular to the following conclusion (Gitelman & Ratnikov, 2008; Kharaim, 2003; Malafeev, Smirnov, Kharaim, Khrilev & Livshits, 2003; Semenov, 2002):

  • 1.

    Development of market relations in the electric power industry and formation of competitive environment in the energy markets make it absolutely unacceptable to use strictly deterministic “technical” (thermodynamic) methods for price substantiation, since any separation of fuel costs fixes the main heat and electricity cost price components (fuel components) independently of the constantly changing price environment;

  • 2.

    Tariffs for electricity and heat generated at CPs should be formed only on the basis of economic (market) methods for allocation of total costs of CPs in accordance with goods (services) provided by CPs depending on the price environment that is formed in heat and electricity markets, sources of competitive threat and its scale;

  • 3.

    Allocation of CPs costs requires that the principle of equivalence between electricity and heat markets (Gitelman & Ratnikov, 2008) (equivalent equilibrium (Malafeev, Smirnov, Kharaim, Khrilev & Livshits, 2003)) be satisfied, since the use of combined generation technology involves no individual heat and power generation businesses. Here it is possible to speak just about the combined generation business proper, because the inefficiency of one decreases the efficiency of the other, so they can be only equally efficient or inefficient. And only a temporary imbalance is acceptable.

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