Simple economics of industrial cogeneration

Journal Article · Sat Jan 01 04:00:00 EST 1983 · Energy J.; (United States)

DOI:https://doi.org/10.5547/ISSN0195-6574-EJ-Vol4-No1-1· OSTI ID:6901667

Joskow, P L; Jones, D R

The authors develop a series of simple models of a typical cost-minimizing industrial firm's decision to invest in cogeneration facilities. They identify the critical technical and economic variables affecting this decision and how these variables interact with one another. The model provides a useful framework for evaluating economical cogeneration opportunities and public policies designed to promote cogeneration. The conclusions are that (1) the energy savings and related thermodynamic properties of cogeneration alone do not indicate an attractive choice for industrial firms; (2) the economics are sensitive to absolute and relative values for fuel costs and electricity costs: (9993) the economics depends on the technical characteristics of the plants where cogeneration will be used; and (4) different cogeneration technologies imply different amounts of electricity production for any particular level of process steam cogenerated. 22 references, 2 figures, 2 tables.

• Research Organization: Massachusetts Inst. of Tech., Cambridge
• OSTI ID: 6901667
• Journal Information: Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 4:1; ISSN ENJOD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290800 -- Energy Planning & Policy-- Heat Utilization-- (1980-)
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320304* -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes-- Waste Heat Recovery & Utilization
COGENERATION
DECISION MAKING
DEUS
ECONOMIC ANALYSIS
ECONOMICS
ENERGY SYSTEMS
FINANCIAL INCENTIVES
INDUSTRY
POWER GENERATION
STEAM GENERATION
TECHNOLOGY ASSESSMENT