purchases or distributed energy resource (DER) operation or a combination of both.
This value is a summation of the costs of electricity and gas purchases, capitalized
costs of DER equipment, and operating and maintenance costs. The results obtained
from this process provide the optimal combination of on-site generation and heat
recovery, an elementary operating schedule detailing how equipment should be
used, and a summary result for each case, such as the total electricity bill and
electricity generation and purchase in each hour (Gao and Ren 2011).
While constructing the model, the following issues are relevant:
1. The procedure must be flexible and generic, allowing analysis of small- and
medium-sized areas in any location and climate, with different demand needs
and supply possibilities.
2. Temporal matching of supply and demand is required in order to analyze diurnal
and seasonal variations.
3. Demands for electricity, heating, cooling, and hot water must be considered.
4. Intermittent suppliers, alternative fuel technologies for CHP generation, heat
storage and production technologies, and other uses for excess electricity must
be available for consideration.
5. The procedure must aid decisions about the best mix, type, and sizing of all
technologies and processes being considered and about the amount of fuel or
other storage required as appropriate. Informed decisions can then be made about
the suitability of potential supply systems based on subsequent cost analyses.
6. It must be possible to analyze and compare a number of potential combinations
quickly and easily.
The model has three possible applications. First, it can be used to guide choices of
equipment for specific sites or provide general solutions, for example, sites, and
propose good choices for sites with similar circumstances. Second, it can also
provide the basis for operation of installed on-site generation, and third, it can be
used to assess the market potential of technologies by anticipating which types of
customer might find various technologies attractive (Afzal et al. 2003).
6.2 Input and Output Data
Input data for the optimization tool can be divided into three categories: customer
information, technical information, and market information.
Customer information includes the load profiles (electricity, cooling, heating, and
hot water) across various time intervals, as well as local climate data (solar, wind,
etc.). Load profiles can be obtained through measured data or simulated using tools
such as DOE-2, Flexsim, or Building Energy Analyzer (Ren et al. 2010).
Technical information refers to thermodynamic parameters governing the use of
DER technologies, such as power generation efficiency and heat recovery efficiency.
Some characteristics related to the environment, such as rate of carbon emissions and
natural gas from the macro grid, are also provided.
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This value is a summation of the costs of electricity and gas purchases, capitalized
costs of DER equipment, and operating and maintenance costs. The results obtained
from this process provide the optimal combination of on-site generation and heat
recovery, an elementary operating schedule detailing how equipment should be
used, and a summary result for each case, such as the total electricity bill and
electricity generation and purchase in each hour (Gao and Ren 2011).
While constructing the model, the following issues are relevant:
1. The procedure must be flexible and generic, allowing analysis of small- and
medium-sized areas in any location and climate, with different demand needs
and supply possibilities.
2. Temporal matching of supply and demand is required in order to analyze diurnal
and seasonal variations.
3. Demands for electricity, heating, cooling, and hot water must be considered.
4. Intermittent suppliers, alternative fuel technologies for CHP generation, heat
storage and production technologies, and other uses for excess electricity must
be available for consideration.
5. The procedure must aid decisions about the best mix, type, and sizing of all
technologies and processes being considered and about the amount of fuel or
other storage required as appropriate. Informed decisions can then be made about
the suitability of potential supply systems based on subsequent cost analyses.
6. It must be possible to analyze and compare a number of potential combinations
quickly and easily.
The model has three possible applications. First, it can be used to guide choices of
equipment for specific sites or provide general solutions, for example, sites, and
propose good choices for sites with similar circumstances. Second, it can also
provide the basis for operation of installed on-site generation, and third, it can be
used to assess the market potential of technologies by anticipating which types of
customer might find various technologies attractive (Afzal et al. 2003).
6.2 Input and Output Data
Input data for the optimization tool can be divided into three categories: customer
information, technical information, and market information.
Customer information includes the load profiles (electricity, cooling, heating, and
hot water) across various time intervals, as well as local climate data (solar, wind,
etc.). Load profiles can be obtained through measured data or simulated using tools
such as DOE-2, Flexsim, or Building Energy Analyzer (Ren et al. 2010).
Technical information refers to thermodynamic parameters governing the use of
DER technologies, such as power generation efficiency and heat recovery efficiency.
Some characteristics related to the environment, such as rate of carbon emissions and
natural gas from the macro grid, are also provided.
124
H. Ren and W. Zhou