Use Spread-Sheet Based CHP Models to Identify and Evaluate Energy Cost Reduction Opportunities in Industrial Plants

Abstract

CHP (for Combined Heat and Power) is fast becoming the internationally accepted terminology for describing the energy utilities generation and distribution systems in industrial plants. The term is all inclusive -boilers, fired heaters, steam turbines, gas turbines, expanders, refrigeration systems, etc. A simulation model of the CHP system is an extremely useful tool to understand the interactions between the various components. Applications include: • identifying opportunities for cost reduction through efficiency improvement • accurate energy cost accounting • evaluating the energy cost impact of proposed process changes on the demand side • comparison of cogeneration options • identifying load shaping strategies (eg. switching between motors and turbine drives) • negotiating fuel/power supply contracts. This paper describes how CHP models can be developed easily and at low cost using electronic spreadsheets, and illustrates their application with a detailed example.