CHP optimized selection methodology for a multi-carrier energy system

Today, the interest on distributed generation has been increasing, especially due to technical development on generation systems that meet environmental and energy policy concerns. One of the most important distributed energy technologies is Combined Heat and Power (CHP). CHP is small and self-contained electric generation plan that can provide power for household applications, commercial or industrial facilities and hence its applications are overtly increasing. It can reduce power loss and enhance service reliability in distribution systems. One of the influential factors for the users is the purchasing cost of CHP which is largely dependent on its type, capacity and efficiency. Therefore among all exciting of the commercial CHP technologies certain economic choices are to be taken into account. Cost-Benefit analysis is one of the famous approaches aiming at maximization of benefit-to-cost ratio.

1. Introduction

The electric power industry is under deregulation in response to changes in legislation, technology, market and competition. One of the main advantages of deregulation is that it can increase the efficiency of industrial sectors and reduce the cost of electrical energy for all customers [1].