Optimum operation of a small power production facility

✍ Scribed by Barney L. Capehart; John F. Mahoney; Boghos D. Sivazlian

• Publisher: Elsevier Science
• Year: 1983
• Tongue: English
• Weight: 705 KB
• Volume: 6
• Category: Article
• ISSN: 0378-7796
• DOI: 10.1016/0378-7796(83)90024-x

✦ Synopsis

To help reduce the U.S.A. "s dependence on imported oil for electrical power generation, the 1978 National Energy Act established regulations to promote construction and operation of cogeneration and small power production facilities. Many of these facilities are presently under construction, with a great number planned. This paper examines the operation of a small power production facility with on-site generation and storage, on-site use, and connection to an electric utility grid system for the purpose of both selling excess power and buying power. It is assumed that the buying and selling price of electricity varies frequently during the day and that the relevant price and demand data may be accurately projected into the near future. With this system description, a mathematical model is formulated and solved by linear programming to obtain a series of periodic buy and sell decisions so as to maximize the profit from operating the small power production facility. Results are presented to illustrate the methodology for determining potential profits.