Sensitivity analysis of the technical and economic feasibility of converter-interfaced CHP System

The adoption of small-to-medium sized (1MW~20MW) combined heat and power (CHP) system is lagging, especially in industrial and commercial applications. Our prior research has proved that interfacing CHP with grid-ready converters can increase its economic value and technical benefits; this paper is focused on investigating the critical parameters impacting profitability of converter-interfaced CHP, including CHP sizing scenario, energy price, generator cost, converter cost, voltage support price, converter to engine size ratio and interconnection delay. An automatic toolkit for evaluating CHP return on investment (ROI) is developed to enhance the computation capability and efficiency. Based on varying the value of critical parameters, 975 use cases are analyzed. Results show that the profitability of converter-interfaced CHP over directly-coupled CHP is more sensitive to energy price, delays in interconnection process, converter cost and much less to generator cost or voltage support price.