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Electrical Engineering Department, Amirkabir University of Technology, Tehran, Iran

CHP Systems in Iranian Industry and Its Comparison with CHP Application in Europe: A Case Study. STSD 2014. M. Poursistani N. Hajilu G. B. Gharehpetian M. Shafiei. Electrical Engineering Department, Amirkabir University of Technology, Tehran, Iran.

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Electrical Engineering Department, Amirkabir University of Technology, Tehran, Iran

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  1. CHP Systems in Iranian Industry and Its Comparison with CHP Application in Europe: A Case Study STSD 2014 M. Poursistani N. HajiluG. B. Gharehpetian M. Shafiei Electrical Engineering Department, Amirkabir University of Technology, Tehran, Iran

  2. 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. STSD 2014 0

  3. 1. SHP or CHP? Separate Heat and Power (SHP) generation problems are: STSD 2014 Heat transfer is expensive and difficult Each one has a low efficiency Electrical power transmission and distribution losses are high High fuel consumption High environmental pollution 1

  4. Combined Heat and Power (CHP) generation benefits are: STSD 2014 Increasing the total efficiency of power generation units Considerable fuel consumption saving Lower emission Increasing flexibility of system Offering thermal energy for consumers 2

  5. 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. STSD 2014 3

  6. This figure shows the share of the CHP power generation in European countries in 2011 STSD 2014 4

  7. 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% . STSD 2014 5

  8. By using CHP 2020 2050 STSD 2014 40% Reduction in contaminants emissions compared to 1990 levels At least 80% 18% 60% Total Energy Supply 80% The Gross Electricity Consumption 35% Reduction in Primary Energy Consumption 80% 35% 6

  9. 4. CHP Systems in Iran Our problems, as a result, motivations are: Low efficiency Growth on demand STSD 2014 Increasing environmental pollution High electrical losses Therefore, CHP Technologies are necessary in Iran 7

  10. 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. STSD 2014 8

  11. 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 . STSD 2014 9

  12. Prim-movers can be as follows: FCs and Micro-Turbines High-Tech STSD 2014 Reciprocating Engines Not Popular Gas Turbine Suitable Choice 10

  13. 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. STSD 2014 11

  14. 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. STSD 2014 12

  15. STSD 2014 • Case study 13

  16. 6. Cirjan city Tire and Rubber Industry The CHP System components, shown in this figure, are: STSD 2014 • prime-mover • storage tank • back-up boiler 14

  17. Hourly electric and thermal loads of this factory have been shown in these figures: STSD 2014 Electrical load Thermal load 15

  18. 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. STSD 2014 16

  19. The following cost function of the CHP system has been minimized by PSO algorithm: STSD 2014 17

  20. Important system data has been listed in this table and STSD 2014 18

  21. the energy prices have been given here: STSD 2014 19

  22. 7. Simulation Results STSD 2014 20

  23. The internal rate of return (IRR) analysis has been given here: STSD 2014 21

  24. 8. Conclusions • 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. STSD 2014 22

  25. 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 STSD 2014 23

  26. Thank you for your attention. • grptian@aut.ac.ir

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