Financial analysis and optimal size and operation for a multicarrier energy system

The interest on distributed generation has been increasing in recent years, mainly due to technical development on generation systems that meet environmental and energy policy concerns. One of the most important distributed energy technologies is combined cooling, heat and power (CCHP) systems. CCHP is a small and self-contained electric, heating and cooling generation plant that can provide power for household applications, commercial or industrial facilities. It can reduce power loss and enhance service reliability in distribution systems. An important factor for the users is the capital cost of CCHP which is largely dependent on its type, capacity and efficiency. Therefore, among all existing commercial CCHP technologies, certain economic choices are to be taken into account. Cost and benefit analysis (CBA) is one of the most common approaches to maximize financial benefits. In this paper, a model to find the optimal size and operation of CCHP, auxiliary boiler, heat and electrical storage unit for users is proposed by considering an integrated view of electricity and natural gas network using GAMS software. Then, as a case study, for a hotel in Tehran, this method is implemented. Finally, by applying COMFAR III software, useful financial parameters are calculated for the proposed multicarrier energy system with optimal elements. © 2012 Elsevier B.V. All rights reserved.