Analysis of Competitiveness and Support Instruments for Heat and Electricity Production from Wood Biomass in Latvia

Use of renewable energy sources (RES) might be one of the key factors for the triple win-win: improving energy supply security, promoting local economic development, and reducing greenhouse gas emissions. The authors ex-post evaluate the impact of two main support instruments applied in 2010-2014 – the investment support (IS) and the feed-in tariff (FIT) – on the economic viability of small scale (up to 2MWel) biogas unit. The results indicate that the electricity production cost in biogas utility roughly corresponds to the historical FIT regarding electricity production using RES. However, if in addition to the FIT the IS is provided, the analysis shows that the practice of combining both the above-mentioned instruments is not optimal because too high total support (overcompensation) is provided for a biogas utility developer. In a long-term perspective, the latter gives wrong signals for investments in new technologies and also creates unequal competition in the RES electricity market. To provide optimal biogas utilisation, it is necessary to consider several options. Both on-site production of electricity and upgrading to biomethane for use in a low pressure gas distribution network are simulated by the cost estimation model. The authors’ estimates show that upgrading for use in a gas distribution network should be particularly considered taking into account the already existing infrastructure and technologies. This option requires lower support compared to support for electricity production in small-scale biogas utilities.

Forestry products as renewable energy sources

Regional production and utilization of biomass in Sweden

Possibilities of implementation of CHP (combined heat and power) in the wood industry in Serbia

At present, power systems based on gas turbines are mainly used for electricity and heat generation. Gas turbines are used in industrial and institutional applications due to high-temperature exhaust, which can be used for heating, drying, or process steam production. The combined cycle gas turbine plants are a mature technology with high reliability and offering rapid response to changing demand for electricity and heat. The combination of a gas turbine with a heat recovery system and a heat accumulator makes the combined heat and power (CHP) plant a flexible unit. The paper presents the optimization tool for the planning process of electricity and heat production in the gas-fired CHP plant with a heat accumulator. The detailed mathematical model of the analyzed cogeneration plant was developed with the EBSILON®Professional and verified based on the results from on-site tests and warranty measurements. The implemented optimization algorithm is used to maximize the profits of the CHP plant operation. The presented solution is based on an evolutionary algorithm. The optimization algorithm is applied to the production determination for the day-ahead planning horizon, with 1-h time step. The obtained results show that the developed optimization model is a reliable and efficient tool for production planning in a CHP plant with gas turbines. The comparative exergy analysis for different technologies of heat recovery from gas turbine exhaust gases was performed to evaluate the quality of the energy conversion process in the CHP plant.

Discovering market opportunities for future CDM projects in Asia based on biomass combined heat and power production and supply of district heating

The closure of a part of the municipal combined heat and power (CHP) plant of Košice city would result in the loss of 200 MW thermal output within a realtively short period of time. The long term development plan for the Košice district heating system concentrates on solving this problem. Taking into account the extremely high (90 %) dependence of Slovakia on imported energy sources and the desirability of reducing the emission of pollutantst the alternative of supplying of 100 MW thermal output from geothermal sources is attractive. However the indices of economic efficiency for this alternative are unsatisfactory. Cogeneration of electricity and heat in a CHP plant, the most efficient way of supplying heat to Košice at the present time. If as planned, geothermal heat is fed directly into the district heating network the efficiency would be greatly reduced. An excellent solution of this problem would be a new conception, preferring the utilization of geothermal heat in support of a combined electricity and heat production process. The efficiency of geothermal energy utilization could be increased through a special heat pump. This paper deals with several aspects of the design of a heat pump to be integrated into the system of the CHP plant.

The paper analyses the economic value of using electric heat boilers and heat pumps as wind power integration measures relieving the link between the heat and power production in combined heat and power plants. Both measures have different technical and economic characteristics, making a comparison of the value of these measures relevant. A stochastic, fundamental bottom‐up model, taking the stochastic nature of wind power production explicitly into account when making dispatch decisions, is used to analyse the technical and economical performance of these measures in a North European power system covering Denmark, Finland, Germany, Norway and Sweden. Introduction of heat pumps or electric boilers is beneficial for the integration of wind power, because the curtailment of wind power production is reduced, the price of regulating power is reduced and the number of hours with very low power prices is reduced, making the wind power production more valuable. The system benefits of heat pumps and electric boilers are connected to replacing heat production on fuel oil heat boilers and combined heat and power (CHP) plants using various fuels with heat production using electricity and thereby saving fuel. The benefits of the measures depend highly on the underlying structure of heat production. The integration measures are economical, especially in systems where the marginal heat production costs before the introduction of the heat measures are high, e.g. heat production on heat boilers using fuel oil. Copyright © 2007 John Wiley & Sons, Ltd.

This study examines the effects of different coal, natural gas and carbon emission prices and market situations on the use of wood for electricity and heat production in the European Union. The analysis is carried out using the global forest sector model EFI-GTM expanded to cover electricity and heat production from wood, coal, natural gas, wind and solar energy. Analysis shows that with low coal and gas prices, use of wood for energy will be limited to low cost logging residues. With high coal, and especially natural gas prices, industrial wood also comes to be used for energy. At a carbon price of 100 €/tCO 2 , some 32 Mm 3 of industrial wood, in addition to 224 Mm 3 of logging residues, are projected to be used for electricity and heat in the EU region (including Norway and Switzerland) in 2030. The relatively low quantity of industrial wood used by the energy sector despite the collapse of the use of coal is explained by the fact that under high CO 2 prices, other energy forms like natural gas, solar and wind energy become more and more competitive. However, the amount of industrial wood used for energy may substantially increase with subsidies for using wood for electricity and heat, even with relatively low carbon prices. With a high coal and gas price and a carbon price of 100 €/t, a subsidy of 30 €/MWh to the wood based and coal with wood co-firing electricity production will have a significant impact on the European wood based sector. Depending on the development of the market demand for forest industry products, such a subsidy may cause a 10–12.5% reduction in forest products production, a 6–9% increase in harvest level, about 30–60% increase in the pulpwood prices, and a 6–9 fold increase of wood imports in the EU, compared to the respective case without a subsidy in 2030.

This article presents a detailed analysis of the economic efficiency of peat utilization for generating electricity and heat in Russian rural areas and decentralized power consumption areas on the basis of the comparison of power tariffs (prices) and full costs of peat-based electricity and heat production. The research was performed using the model-information complex detailed with respect to municipal areas and major peat deposits that was developed at the Energy Institute, National Research University Higher School of Economics. It is shown that the firing of lignin helium fuel (LHF) granules that are made from peat extracted by the excavating method according to the new, patented technology is considered most efficient. In nongasified areas, the total cost of heat power that is generated in new boiler houses on the basis of LHF granules is often lower than the total heat cost for the gasification of the area and construction of gas boiler houses. In some cases, the heat cost in gasified areas is lower when using a boiler house based on LHF granules than that provided by the conversion of a boiler house to gas fuel. It is also shown that the construction of peat-based heat sources with the overall power of up to 27600 GJ/h that generate a heat power of up to 167.5 million GJ/year will be economically efficient in the coming years, provided that the tariffs for energy sources remain the same. Taking into account the supportive measures that were accepted on a legislative basis in July 2016, sources with the total power of up to 70 GW may be effective for peat-based plants with combined heat-andpower generation. To stimulate the utilization of peat in decentralized power consumption areas and rural areas located in the vicinity of deposits of this fuel type, it is also suggested to make amendments in the normative legal base.

Biofuel gasification combined heat and power—new implementation opportunities resulting from combined supply of process steam and district heating

Improving the accuracy of electricity and heat production forecasting in a supervision computer system of a selected gas-fired CHP plant operation

Gasification process integration with existing combined heat and power plants for polygeneration of dimethyl ether or methanol: A detailed profitability analysis

As variable generation electricity sources, namely wind and solar, increase market penetration, the variability in the value of electricity by time of day has increased dramatically. In response to increase in electricity demand, natural gas “peaker plants” are being added to the grid, and the need for spinning and nonspinning reserves have increased. Many natural gas, and other heat source based, power plants exist as combined heat and power (CHP), or cogeneration, plants. When built for industrial use, these plants are sized and run based on heat needs of an industrial facility, and are not optimized for the value of electricity generated. With the inclusion of new, less expensive thermal energy storage (TES) systems, the heating and electricity usage can be separated and the system can be optimized separately. The use of thermal energy storage with CHP improves system economics by improving efficiency, reducing upfront capital expenditures, and reducing system wear. This paper examines the addition of thermal energy storage to industrial natural gas combined heat and power (CHP) plants. Here a case study is presented for a recycled paper mill near Los Angeles, CA. By implementing thermal energy storage, the mill could decouple electric and heat production. The mill could take advantage of time-of-day pricing while producing the constant heat required for paper processing. This paper focuses on plant economics in 2012 and 2015, and suggests that topping cycle industrial CHP plants could benefit from the addition of high temperature (400–550°C) energy storage. Even without accounting for the California incentives associated with implementing advanced energy storage technologies and distributed generation, the addition of energy storage to CHP plants can drastically reduce the payback period below the 25 year expected economic lifetime of a plant. Thus thermal energy storage can make more CHP plants economically viable to build.

The total share of intermittent renewable electricity is increasing, intensifying the need for power balancing in future electricity systems. Demand-orientated combined heat and power (CHP) production from biogas has potential for this purpose. An agricultural biogas plant, using cattle manure and sugar beet for biogas and CHP production, was analyzed here. The model Dynamic Biogas plant Model (DyBiM) was developed and connected to the Anaerobic Digestion Model No. 1 (ADM1). Flexible scenarios were simulated and compared against a reference scenario with continuous production, to evaluate the technical requirements and economic implications of demand-orientated production. The study was set in Swedish conditions regarding electricity and heat price, and the flexibility approaches assessed were increased CHP and gas storage capacity and feeding management. The results showed that larger gas storage capacity was needed for demand-orientated CHP production but that feeding management reduced the storage requirement because of fast biogas production response to feeding. Income from electricity increased by 10%, applying simple electricity production strategies to a doubled CHP capacity. However, as a result of the currently low Swedish diurnal electricity price variation and lack of subsidies for demand-orientated electricity production, the increase in income was too low to cover the investment costs. Nevertheless, DyBiM proved to be a useful modeling tool for assessing the economic outcome of different flexibility scenarios for demand-orientated CHP production.