Competitiveness of Existing Combined Heat and Power Plants in Comparison with Modern Sources for Separate Generation of Electricity and Heat

Abstract

The development of cogeneration has been recognized as a priority line of measures aimed at more efficient combating climate change. Given the climatic and geographical features, this is one of the main methods for reducing greenhouse gas emissions in the Russian Federation. Development of the Russian Federation's energy sector is based on using the best available technologies (BAT). The Russian Federation Government’s Decree No. 398-R of March 19, 2014 defined "a set of measures aimed at doing away with outdated and inefficient technologies, switching to the principles of the best available technologies and introducing modern technologies". In making strategic decisions about the target structure of generating capacities in the energy system of Russia, it is necessary to correctly compare the efficiency with which electricity and heat are obtained from sources of their combined and separate generation. In so doing, the same list of goods and services provided by the sources of electricity and heat for the same electrical and thermal loading modes of generating equipment should be taken into account. Cross-subsidization distorts the competitiveness indicators of combined generation in both the wholesale and retail markets. Currently, for the purposes of drawing up state statistical reports on the fuel efficiency with which electricity and heat are produced and distributed, the physical method and the Firm ORGRES method are used. An analysis of combined heat and power plants (CHPPs) carried out using the physical method shows that CHPPs are less competitive in the heat market, whereas their analysis carried out using the Firm ORGRES method shows that they are less competitive in the electricity market. None of these methods should be used in making strategic decisions on shaping the structure of generating capacities for supplying electricity and heat supply to consumers, as they give insufficiently correct results. CHPP operation in the cogeneration mode is in the interests of the electric power and heat power systems. CHPP operation in the condensing mode is performed by commands of the system operator to support the required electric modes in the country’s electric power system. The developed method of separating fuel consumption between the production of electricity and heat eliminates cross-subsidizing, which distorts the initial information when making strategic decisions. Calculations have shown that combined generation of electricity and heat at CHPPs equipped with R-, T-, and PT-type steam turbines with the mandatory process steam discharges into the condenser has the best specific fuel consumption indicators in generating electricity and heat in comparison with the modern technologies for their separate production during operation in the daily load curve base part. The highly maneuverable gas turbine based CHPP presented in the article features a higher fuel heat utilization coefficient in comparison with the modern technologies for separate production of electricity and heat during operation in the daily electric load curve peaking part.