Optimal Heat Production Pattern of CHP through Introducing of Alternative Energy Portfolio Standard in South Korea
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Combined heat and power (CHP) has a high energy efficiency as it produces heat and electricity at the same time. One of the policies providing incentives for the energy-saving benefits of the CHP system is the alternative energy portfolio standard (APS). The APS is a program that provides incentives for the amount of fuel saved by CHP. The South Korean government needs information to introduce APS to improve national energy efficiency. In order to investigate the effect of the APS introduction, this paper attempts to examine the changes in fuel savings caused by the change in the heat production pattern of the CHP system, under the assumption that the APS is introduced into South Korean wholesale electricity market. To this end, a CHP operation model is constructed based on the past operating performance of the CHP system in South Korea. After heat production patterns before and after the APS introduction are derived, the amount of fuel savings are computed and compared. It was found that the introduction of APS can reduce the heat producing hours of CHP from 2009 to 423 hours and in-crease fuel savings from 46 GWh to 100 GWh in terms of the single CHP with 830MW capacity.
Abstract
Combined heat and power (CHP) has a high energy efficiency as it produces heat and electricity at the same time. One of the policies providing incentives for the energy-saving benefits of the CHP system is the alternative energy portfolio standard (APS). The APS is a program that provides incentives for the amount of fuel saved by CHP. The South Korean government needs information to introduce APS to improve national energy efficiency. In order to investigate the effect of the APS introduction, this paper attempts to examine the changes in fuel savings caused by the change in the heat production pattern of the CHP system, under the assumption that the APS is introduced into South Korean wholesale electricity market. To this end, a CHP operation model is constructed based on the past operating performance of the CHP system in South Korea. After heat production patterns before and after the APS introduction are derived, the amount of fuel savings are computed and compared. It was found that the introduction of APS can reduce the heat producing hours of CHP from 2009 to 423 hours and in-crease fuel savings from 46 GWh to 100 GWh in terms of the single CHP with 830MW capacity.
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