Managing Cogeneration Systems
DOI:
https://doi.org/10.13052/dgaej2156-3306.1726Abstract
The small cogeneration plant manager* faces new challenges in
that the cost of natural gas and electricity vary as never before. Time-ofday tariffs and deregulated markets require frequent balancing of thermal and electric costs and benefits. A simplified method allows a graphical solution that determines profitability based on fuel and electric rates.
Whether this more frequent review is monthly, daily, or hourly depends
on local conditions
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References
Peltier, Robert V., and James F. Ring, “Managing Cogeneration
Systems,” Energy Engineering, 86, 5, pp. 626, 1999.
Muschick, Russell P., and Loren G. Toole, “Simplified Operator’s
Guidance for a Cogeneration Plant,” Cogeneration and Competitive
Power Journal, 14, 2, pp. 64-73, Spring 1999.
Natural gas price may not be determined until after the fact, at
the end of the billing month. Use of a range or a worst case estimate can still reduce risk to the facility.
There is no winter on-peak rate in the Pacific Gas & Electric service area. Part-peak rates apply.
Wrote FERC Commissioner William L. Massey, “Prices have not
been just and reasonable… the transfer of wealth from purchasers
of power to sellers has been absolutely staggering and completely
defies the public interest,” Concurring opinion on FERC Order
dated December 15, 2000, 93FERC61294.
California Energy Commission, “Price Responsive Load Management,” presented to an AEE conference, San Diego, by Arthur
Rosenfeld, Commissioner, May 9, 2001.
http://www.teldalasolutions.com/
Personal communication.
With electric cost on the x-axis and fuel cost on the y-axis, plot
curves for simple payback from, say, two years up to break-even.
For the plant in the case study, these “curves” are actually
straight lines.
D. Dietrich, R. Spitzka, D. Jones, “Case Studies of Small Cogeneration,” presented at 22d AEE Conference in Atlanta, October 22,
Published in proceedings and in Cogeneration and Competitive Power Journal, 15, 2, pp. 37-49, Spring 2000.
D. Dietrich, “Case Studies of Cogeneration: Ten Megawatt Gas
Turbine,” presented at West Coast Energy Management Confer ence, San Jose, CA, June 22, 2000. Published in proceedings and
in Cogeneration and Competitive Power Journal, 15, 3, pp. 2841, Summer 2000.
Manuscript dated July 15, 2001 presented at the Integrated Energy Efficiency Congress, Cleveland, Ohio, August 29-3
