Implementation of an integrated resource planning strategy. An optimal based formulation for co-generation applications

Abstract

In this paper the technical and financial feasibility of an implemented Integrated Resource Planning (IRP) strategy for co-generation applications in Egypt are presented for industrial and commercial users. An optimal based formulation is developed to simulate sizing of reciprocating engine-based co-generation units and the mix selection of both electrical and thermal loads being supplied through these units over their operation duration. The objective function of the optimization problem was formulated to minimize the use of supply side resources such as purchased electrical energy from the utility and purchased fuel for thermal needs to produce steam or hot water for example, Taha (1), Gellings and Chmberlin (2). Both thermal and electrical demand profiles for power and energy represent the equality constraints of the optimal formulation in addition to the thermal to electric ratio of the co-generation unit as well as the ratio for the thermal and electrical loads at the plant. The demand, energy, capital cost investment and running charges as well as the discretized thermal and electrical load profiles are utilized as the optimization control variables in order to simulate practical decisions to select the appropriate electrical/thermal loading of the co-generation unit. Three examples (two implemented and one under implementation) of co-generation applications in industrial and commercial establishments in Egypt are presented; the first in a metal industry, the second in a food industry and the third in a hotel. The highlights of these applications show that the monitored amount of input energies saved are in the range of thirty percent (30%), and the corresponding discounted cash flow analyses indicate payback periods less than five years. This reflects a better utilization for the available resource energies on the national level. Additionally the environmental impact assessment of these applications are pointed out. Furthermore the incremental economical impacts are presented for these examples and are estimated for the overall national level.