Combined heat and power plant optimization tool in a competitive energy market context

In this paper, a comprehensive optimization tool for the local trading strategies of Combined Heat and Power (CHP) generating plant in the competitive energy market context is presented. The idea is that a choice must be made between the installation of cogeneration and separate systems for electricity and heat. The energy management in the liberalized market context is becoming more complex. Energies costs are one of the major contributors for the total operating cost of the industrial plant. Consequently, the total operating cost minimization is mandatory. Simultaneous purchase and sale of electrical energy in order to maximise customer profit have to be modelled. The proposed work considers the arbitrage of value and price of bulk electricity and thermal energy to the customer advantage.