Optimal planning and economic evaluation of trigeneration districts

Trigeneration, or combined cooling, heat and power (CCHP), is the process
by which electricity, heating and cooling are simultaneously generated from
the combustion of a fuel. Trigeneration systems for serving the electricity, thermal
and cooling loads in residential districts are a possible solution to enhance energy
efficiency, reduce fossil fuel consumption and increase the use of renewable energy
sources in the residential sector. Technical, economical and financial issues have to
be taken into account when planning a trigeneration system, or when expanding an
existing generation system. In this chapter a two-step decision support procedure is
presented for analysing alternative system configurations. The first step is based on
a mixed integer linear programming model that allows to describe the system components
in great detail and computes the annual optimal dispatch of the distributed
generation system with a hourly discretization, taking into account load profiles, fuel
costs and technical constraints. The optimal dispatch is then used for the economic
evaluation of the investment, taking into account prices of commodities, taxation,
incentives and financial aspects. The procedure allows to compare alternative plant
configurations and can be used as a simulation tool, for assessing the system sensitivity
to variations of model parameters (e.g. incentives, ratio debt/equity,...).