Influence Analysis of Elec Tricity Price Mechanisms on CCHP Investment and Operation Planning

Abstract

Electricity price mechanism has an important influence on the operation and investment planning of CCHP under the non-island operation. Based on the MILP model for CCHP, this paper studies the impact of the various electricity price mechanisms, such as fixed tariff, time-of-use tariff, two-part tariff and its combination, on the investment and operation planning of CCHP, as well as on the characteristics of power exchange between CCHP and distribution network. Based on the actual load of a hospital in Shanghai, the research shows that time-of-use price mechanism can significantly reduce the investment and operation cost of CCHP, improve primary energy efficiency, and guide CCHP to participate in peak load shifting. If two-part tariff with TOU is adopted, the power exchange characteristics between CCHP and grid, as well as the economic indexes of the investment and operation planning of CCHP, can be further improved while ensuring the income of the grid.