Impacts of feed-in tariff policies on design and performance of CCHP system in different climate zones

Abstract

In this paper, a feed-in tariff policy which can contribute to both energy and economic performance of a CCHP system is proposed. By applying this feed-in tariff policy, the impact on design optimization (power generation unit capacity and operation strategy) and system performance (economic, energy, and matching performance) of a hospital CCHP system used in different climate zones are evaluated and analyzed. In policy one (Pol1), no electricity is allowed to be sold. In policy two (Pol2), the electricity selling price is constant. In policy three (Pol3), the selling price of electricity is proportional to the PER (Primary Energy consumption Ratio) of the system when the PER is not lower than a critical value. Otherwise, the selling price is zero. The results show that Pol3 can ensure both energy and economic performances of CCHP system. The effect of feed-in tariff policy to improve the performance of CCHP system reduces gradually from the cold zone to the hot zone. Multi-criteria decision making results show that Pol3 with reasonable parameters is the best choice in all climate zones except for the hottest zone in this study. When improving PER is attractive, following thermal load operation strategy is the best choice under Pol3. In the hottest zone of this study, little excess electricity would be produced and sold to the grid. Feed-in tariff policy has little help to improve the economic and energy performance in this zone.