Research on the Income Mechanism and Investment Strategy of Additional Heat Source in Combined Heat and Power System

Abstract

Utilization of additional heat sources (AHS), such as electric boilers and heat storage tanks, is an effective way to promote the wind power consumption in large scale combined heat and power system (CHPS) in northern China. To promote the construction and operation of the AHS, this paper proposed a market mechanism that thermal power plant and wind farm share the benefits and investment risks of AHS together. A novel market mechanism of AHS including income mechanism and investment strategy is proposed. Under this market mechanism, the following aspects are studied: (1) The cost and income model of each subject is derived; (2) The feasible region of invest and income proportion of each participant is analysed; (3) The optimal investment strategy of multi participates is built. At last, actual example simulations is conducted to demonstrate the effectiveness of the proposed market mechanism. Simulation results show that the proposed method can arouse the enthusiasm of wind farm and thermal power plant and promote the construction and operation of the AHS, which has a certain significance to promote wind power consumption in combined heat and power system.