Research on the Fuel Cost Allocation for Combined Heat and Power

Abstract

Cogeneration, i.e. the combined heat and power production (CHP) at an energy conversion plant, has received significant attention particularly since the oil crises of the 70s, and cost accounting in CHP has a number of objectives among which fuel cost allocation is one of the most important. Several methods for fuel cost allocation have been in use for a number of years, Quantity of Heat Method (QHM) is the method in law (The 1997 Electricity Law) in China. Based on QHM, in this paper the actual condition of the Combined Heat and Power system (CHP) has been considered completely, the Auxiliary Power Consumption for cogeneration system (APC) is divided into four parts－APC for heat production only, APC for electricity generation by condensate steam only, APC for chemical water treatment and APC common to both heat and power production. By this way, a better way for fuel cost allocation between electricity and heat in three representative 200 MW N-C units in a certain Thermal Power Plant, and then the fuel costs for heat supply and power supply of these three units are calculated correctly.