Market-based optimization model of combined heat and power operation

Optimal scheduling problem in heat network containing novel technologies of combined heat and power generation with high efficiency, reducing greenhouse-gas emissions and active involvement on energy markets with volatile prices enable energy managers operating heat and power networks to further optimize the common operation of the systems. Optimization of common operation in such networks includes scheduling of generation of heat and electrical energy in network, based on market conditions, network requirements and limitations of all individual units and the whole system. This paper proposes a linear model with integer linear programming to solve optimal scheduling problem for the operation of multiple combined heat and power units, electric steam boilers and gas boilers in heat and power networks. The output operation from proposed model is simulated on existing district heating network in Slovenia and compared to the current operation of the network to demonstrate the efficiency of the proposed optimal scheduling algorithm under various circumstances and different output parameters such as financial impact and environmental impact of such optimization method.