Abstract

The pricing of thermal energy is an important component of the efficient operation of the heat supply system. The article deals with the calculation of the cost of heat for consumers and producers of heat as based on the optimization problem of operation modes of the heat supply system with its further reduction to the conditions of optimality. The latter is to be achieved on the basis of the Lagrange function, with undetermined Lagrange multipliers obtained in the calculation process to be interpreted as nodal (marginal) prices of heat. This approach allows one to determine the pricing at each node. Based on the calculation of nodal prices of heat we determine the cost of heat transportation. Backed by the methodological tools developed, we have performed a demonstration of the calculation of nodal prices of heat and developed an algorithm for calculation of nodal prices of heat generation and consumption and overall technical and economic performance indicators of the heat supply system.

Highlights

  • Changes in the political and economic structure of Russia since the early 1990s were bound to influence the energy industry

  • The right to regulate tariffs for electricity and heat supplied to consumers in the regions was conferred to the regional authorities that as a result made the financial standing of energy companies dependent on such authorities

  • To calculate the nodal prices, we propose to use the method of Lagrange multipliers based on the steady-state operation mode optimization problem in the heat supply system, which, given balance constraints, are construed as nodal prices

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Summary

Introduction

Changes in the political and economic structure of Russia since the early 1990s were bound to influence the energy industry. By combining all functions related to heat generation, transportation, and sales within the framework of the "Unified Heat Supply Organization" (UHSO), control over heat sources (HS), distribution, main, and district heating networks, reduces economic and technical risks, as well as stabilizes system reliability, forming a structure where the UHSO is a monopoly At this stage of market operation, financial profitability is achieved by minimizing the cost of meeting consumer demand by the amount of heat generation available in the free trade sector considering possible consumption projections and heat supply state data while complying with the reliability criteria [1]. The problem with constraints is transformed into an equivalent problem of unconstrained optimization, which involves some unknown parameters, the so-called Lagrange multipliers

Problem statement
Algorithm for calculating the cost of heat in the HSS
Application of the method developed
Performance indicators
Conclusion
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