Elnaz Abdollahi, Haichao Wang, and Risto Lahdelma
Combined heat and power, linear programming, economic optimization, power trade
Combined heat and power (CHP) production is a prominent technique to produce heat and electric power in an integrated process. Compared to separate heat and power production, CHP reaches much higher energy efficiency. The heat is produced to satisfy the local demand of district heating or heat for industrial processes. Generated power can be used locally but it can also be transferred over long distances to other areas. Optimal operation of a CHP system can be planned by means of an optimization model. In this paper we present a model for the hourly CHP production and power transmission problem, and present how the model can be solved by coordination between two very efficient optimization algorithms: the Power simplex algorithm for optimizing local CHP production and the network simplex algorithm to optimize the power transmission. We illustrate the algorithm with a small example with three CHP production areas. The model applies in principle both to local small scale CHP systems and large scale international CHP systems.
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