Optimal operation scheme for small cogeneration systems upgraded from standby generators

A novel optimal scheme for small cogeneration systems upgraded from standby generators is introduced. Economic evaluations of such upgraded projects play a major part in the decisions made by investors. Some of the benefits and costs of these projects are examined in this paper. The fuel cost, time-of-use rate structure and system constraints are taken into account in the evaluation. The results indicate that upgrading standby generators to cogeneration systems is profitable and should be encouraged, especially for those utilities with insufficient spinning reserves, and moreover, for those having difficulty constructing new power plants.