Electrical Engineering Department, Amirkabir University of Technology,

Tehran, Iran

M. Poursistani N. Hajilu G. B. Gharehpetian M. Shafiei

CHP Systems in Iranian Industry and Its Comparison with CHP Application

in Europe: A Case Study

What is a CHP SYSTEM?CHP is on-site generation of electricity and the utilization of the heat that is a by-product of the electricity generation.

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1. SHP or CHP?

Separate Heat and Power (SHP) generation problems are:

Each one has a low efficiency

Electrical power transmission and

distribution losses are high

Heat transferis expensive and

difficult

High environmental

pollution

High fuel consumption

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Combined Heat and Power (CHP) generation benefits are:

Considerable fuel consumption

savingLower emission

Increasing the total efficiency of power generation

units

Increasing flexibility of

system

Offering thermal energy for consumers

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2. CHP SYSTEMS IN EUROPEAN COUNTRIES

The European Commission had set a target of 18% to participate in CHP technology by 2010 in its 1997 strategy.

According to the latest statistics, the portion of the co-generation in the electricity production in Europe was about 11.2% in 2011.

Latvia, Denmark, Lithuania and Finland have the highest percent of CHP based generated power respected to their total power generation.

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This figure shows the share of the CHP power generation in European countries in 2011

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3. CHP Systems in Germany

The contribution of the CHP systems in German power generation system in 2005 was 12.6% .

In 2011, it was 13.1% (90TWh ).

Today, Germany CHP market is the biggest one in Europe (more than 20% of the cogenerated electricity of EU)

In 2050, the target is 25% .

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2020 2050

Reduction in contaminants

emissions compared to 1990

levels

At least80%

Total Energy Supply 18% 60%

The Gross Electricity Consumption35% 80%

40%

Reduction inPrimary Energy Consumption

35% 80%

By using CHP

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4. CHP Systems in Iran

Low efficien

cy

Growth on

demand

High electrical

losses

Increasing environmental pollution

Therefore, CHP Technologies

are necessary in Iran

Our problems, as a result, motivations are:

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But ,our barriers are:

Lack of knowledge about CHP benefits and savings

lack of enough space for installing CHP systems

CHP project implementation procedure is not clear for some industries.

Lack of integrated urban heating/cooling supply system.

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High energy subsidies

High capital cost of smaller CHP units for small scale applications

Sanctions on Iran

Lack of a coordinated and long term strategy and policy for the heat generation sector .

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FCs and Micro-Turbines

Reciprocating Engines

Gas Turbine

High-Tech

Not Popular

Suitable Choice

Prim-movers can be as follows:

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Incentives in Iran are:

The government provides 60-80 percent of the capital cost of DGs as long term loans.

Buying electric power of CHP systems is also warranted by government for up to five years.

The gas needed for electric and heat power generation, has a subsidy.

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5. Suggestions for International Collaboration

Evaluating growth potentials in Iran for energy markets.

Determination of the best practice policies.

Development of an international CHP network, to share experiences and ideas.

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CASE STUDY

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prime-mover

storage tank

back-up boiler

The CHP System components, shown in this figure, are:

6. Cirjan city Tire and Rubber Industry

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Hourly electric and thermal loads of this factory have been shown in these figures:

Electrical load

Thermal load

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In this study, we want :

to meet the electrical and thermal demands with minimum running cost,

determine optimal capacity of the CHP generator and

compare the results with European cases.

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The following cost function of the CHP system has been minimized by PSO algorithm:

CHP boiler CHP Boiler

l inv inv run run

utility utility utility

pur dem sale

totaC C C C C

C C C

-

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Item 

Natural gas Heat rate (kWh/m3) 12.8

Boiler

Efficiency (%) 80

Capital cost ($/kW) 90.91

Lifetime (year) 20

CHP plant

Efficiency (%) 34.8

Heat/electricity ratio 1.5

Capital cost ($/kW) 1760

Lifetime (year) 20

Others Real interest rate (%) 15

Important system data has been listed in this table and

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 Gas

price($/kWh)

Electricity price ($/kWh)

peak load hoursmedium

load hours

low load

hours

Iran case with

subsidies0.001 0.032 0.016 0.008

Iran case with

redirected subsidies

0.0055 0.16 0.08 0.04

France 0.084 0.19 0.19 0.19

Germany 0.09 0.35 0.35 0.35

the energy prices have been given here:

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ResultsIn Iran with

subsidies

In Iran with

redirected subsidies

In France

In Germany

Cost of SHP ($)

614751.7 2603981.1 7569605.3 9602991.9

Operating cost of CHP($)

404254.9 2218237.1 6299537.03 8092366.4

Capital cost of CHP($)

1219001.2 1727934.2 1849159.9 1933040.6

Total cost of CHP($)

1623256.1 3946171.3 8148696.9 10025406.9

Profitability (in first year) ($)

-1008504.3 -1342190.2 -579091.71 -422415.1

Optimal capacity of CHP(kW)

1010 1489 1605 1687

7. Simulation Results

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IRR after

year No.

Iran case with

subsidies

Iran case with

redirected subsidies

France Germany

1 -83% -78% -46% -38%

3 -27% -18% 29% 39%

5 -5% 4% 46% 55%

10 11% 18% 54% 61%

15 15% 21% 54% 62%

20 16% 22% 54% 62%

The internal rate of return (IRR) analysis has been given here:

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The optimal sizing of the CHP is essential for economic investment.

The utilization of the CHP system can reduce the total energy consumption .

The energy price policies have an important role in increasing the economical benefits of CHP systems.

Due to higher energy prices in European countries, such as France and Germany, the installation of the CHP system is more economic than Iran case.

8. Conclusions

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Redirecting subsidies is necessary for Iranian power system.

The profitability of the CHP system under unsubsidized energy prices is considerable.

Increasing the energy prices results in the application of CHPs with higher capacities.

In Iran, the installation of the CHP system will be profitable in 6-th and 5-th year with and without considering subsidies, respectively

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Thank you for your attention.

grptian@aut.ac.ir