Distributed Generation Dispatch Optimization under VariousElectricity Tariffs
The on-site generation of electricity can offer buildingowners and occupiers financial benefits as well as social benefits suchas reduced grid congestion, improved energy efficiency, and reducedgreenhouse gas emissions. Combined heat and power (CHP), or cogeneration,systems make use of the waste heat from the generator for site heatingneeds. Real-time optimal dispatch of CHP systems is difficult todetermine because of complicated electricity tariffs and uncertainty inCHP equipment availability, energy prices, and system loads. Typically,CHP systems use simple heuristic control strategies. This paper describesa method of determining optimal control in real-time and applies it to alight industrial site in San Diego, California, to examine: 1) the addedbenefit of optimal over heuristic controls, 2) the price elasticity ofthe system, and 3) the site-attributable greenhouse gas emissions, allunder three different tariff structures. Results suggest that heuristiccontrols are adequate under the current tariff structure and relativelyhigh electricity prices, capturing 97 percent of the value of thedistributed generation system. Even more value could be captured bysimply not running the CHP system during times of unusually high naturalgas prices. Under hypothetical real-time pricing of electricity,heuristic controls would capture only 70 percent of the value ofdistributed generation.
- Research Organization:
- Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
- Sponsoring Organization:
- USDOE
- DOE Contract Number:
- DE-AC02-05CH11231
- OSTI ID:
- 926608
- Report Number(s):
- LBNL-62869; R&D Project: E584EE; BnR: YN1901000
- Journal Information:
- Internation Journal of Electronic BusinessManagement, Vol. 5, Issue 3; Related Information: Journal Publication Date: 2007
- Country of Publication:
- United States
- Language:
- English
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