Review and comparison of allocation methods for the separation of electrical and thermal cogeneration - district-heating costs. [Conference paper]

Conference · Tue Jan 01 04:00:00 EST 1980 · Proc. Am. Power Conf.; (United States)

OSTI ID:6589984

Pavlenco, G F; Englesson, G A; Denesdi, L

There is a multitude of cost-allocation methods for separating the electrical and thermal cogeneration costs but, to some degree, each method is biased in the manner in which the allocation of the cogeneration benefits is made between the two forms of energy. Of the methods considered, the equal discount method appears to be a good choice for new cogeneration plants. Using this method, both electricity users and heat users will share the economic benefits. For retrofitted generating stations the Margen method appears to be appropriate as it is simple, direct, and easy to understand. It provides incentives to heat users to convert from existing systems to district-heating systems without penalizing existing customers in the process. If cogeneration for hot water district heating is to become a reality on a large scale in the near future, cogeneration retrofit stations will most likely be the first to come on line as cogeneration heat sources. During these early stages, a substantial economic benefit could not be provided for the electric customers, so that the cogeneration benefits may be put to better use if allocated in full to the heat users. The selection of an allocation method for a particular application should be made, however, after comparing results from different methods and analyzing the implications of each.

• Research Organization: United Engineers and Constructors Inc., Philadelphia, PA
• OSTI ID: 6589984
• Report Number(s): CONF-800424-
• Conference Information: Journal Name: Proc. Am. Power Conf.; (United States) Journal Volume: 42
• Country of Publication: United States
• Language: English

Related Subjects

20 FOSSIL-FUELED POWER PLANTS
200106 -- Fossil-Fueled Power Plants-- Economics
29 ENERGY PLANNING, POLICY, AND ECONOMY
290800* -- Energy Planning & Policy-- Heat Utilization-- (1980-)
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
ALLOCATIONS
CALCULATION METHODS
COGENERATION
COMPARATIVE EVALUATIONS
COST
DEUS
DISTRICT HEATING
ECONOMIC ANALYSIS
ECONOMICS
ENERGY SYSTEMS
HEATING
POWER GENERATION
STEAM GENERATION