Industrial CHP optimal management in the energy market under incomplete information

Abstract

This paper investigates the possibilities how to optimize the industrial combined heat and power plant (CHP) daily operations and decision making process. The aim of the paper is to develop a method for an economic optimization of the industrial CHP. The method takes into account the industrial production together with an energy production in order to maximize the global profit for the entire facility. The method utilizes the electricity spot market price variation for the benefit of the market participant.