District heating/cogeneration application studies for the Minneapolis-St. Paul area: allocation methods for the separation of electrical and thermal cogeneration costs

Technical Report · Wed Oct 01 04:00:00 EDT 1980

OSTI ID:6886848

Pavlenco, G F; Englesson, G A

Allocation methods proposed in the US and Europe for separating electricity and heat cogeneration costs were evaluated for their suitability for dual-purpose plants equipped with either new cogeneration turbines or turbines retrofitted for cogeneration. Both direct and indirect allocation methods were considered. The distinction between the two groups of methods depends upon whether the cost allocation is made by separating the total annual costs (directly), or by separating individually the various fixed and variable costs (indirectly). All methods considered were applied to the case of a large cogeneration/district heating plant equipped with a new 800-MW(e) condensing-tail turbine assumed to be operating in the Minneapolis-St. Paul area. The unit costs obtained for electricity and heat were compared with those determined for separate generation of the two forms of energy. Costs for the High Bridge Station Retrofit Study were allocated using only two direct allocation methods (Margen and equal discount) because the absence of detailed capital cost information for various plant equipment did not permit the application of any indirect allocation method. Of the methods considered, the equal discount method appeared to be a good choice for new cogeneration units. With this method, both the heat and electricity users would share the economic benefits of cogeneration. For plants retrofitted to cogeneration, such as the High Bridge Station, the Margen method was recommended because it provides incentives to heat users to convert from existing systems to district heating systems while not penalizing existing electric customers.

• Research Organization: Oak Ridge National Lab., TN (USA)
• DOE Contract Number: W-7405-ENG-26
• OSTI ID: 6886848
• Report Number(s): ORNL/TM-6830/P12
• Country of Publication: United States
• Language: English

Related Subjects

20 FOSSIL-FUELED POWER PLANTS
200105* -- Fossil-Fueled Power Plants-- Heat Utilization
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
CO-GENERATION
DISTRICT HEATING
DUAL-PURPOSE POWER PLANTS
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC POWER
EUROPE
EVALUATION
GREAT LAKES REGION
HEATING
MACHINERY
MINNESOTA
NORTH AMERICA
POWER
POWER GENERATION
POWER PLANTS
RETROFITTING
THERMAL POWER PLANTS
TURBINES
TURBOMACHINERY
USA