Allocation of Joint Costs and Price Setting for Electricity and Heat Generated in Cogeneration

In the case of cogeneration, allocation operation costs has a particularity specific to joint production heat and electricity from same primary energy source. The cost is also influenced by demand conditions faced products, prices must be sufficient for both products remain profitable competitive with other power generation alternatives in respective markets. Therefore, choice methodology market conditions. paper presents an algorithm determining produced cogeneration according economic method was extended based on duality theory verifying methods establishing forecasting strategies. An example provided plant (1.287 MWe; 5.386 MWth) ORC (Organic Rankine Cycle) technology biomass fuel. fuel major influence total plant, between 68% 77% analyzed scenarios. variation considered application setting electricity.