CHP - COMBINED HEAT & POWER


Managing CHP plants for maximum value


Wayne Davies, Energy Markets programme manager at Enel X UK, outlines how organisations can utilise their cogeneration or combined heat and power (CHP) plants to create more value


C


HP assets set up to meet the past needs of a business may not be


optimal for today. Using intelligent software to create a dynamic operating schedule and automatically deploying that schedule can minimise energy


waste and maximise the value of flexible capacity. According to research


commissioned by Enel X, four out of every five CHP assets in the UK were installed three or more years ago, and one in three were specified to meet the site’s past energy needs. Energy managers who optimised their CHP to meet the site’s past


Wayne Davies, Energy Markets programme manager at Enel X UK


needs may now find themselves with power capacity to spare, especially where energy efficiency measures have reduced demand. This spare capacity has value; it can be traded in a number of ‘flexibility’ markets and become a source of revenue for the organisation.


IMPROVING ASSET UTILISATION CHP units that haven’t been optimised to serve variable site loads typically operate at sub-optimal performance.


Generating heat and electricity surplus to requirements simply wastes energy, reduces site efficiency and is bad for the environment. By retrofitting intelligent software


controls to optimise the management of a CHP, energy managers can improve the utilisation of the asset. Compared with deploying a static operating schedule, controlling the CHP unit dynamically minimises energy waste and maximises the value of flexible capacity. (Figure 1)


MONETISING FLEXIBLE CAPACITY As grid operators continue to integrate more renewable energy, they need more flexible capacity to balance supply and demand. According to Aurora Energy Research, revenue for flexible technologies is forecast to grow by 13% CAGR to create a £2.3 billion market by 2030. The GB electricity system has seen a


number of price spikes in both spot energy markets and the balancing mechanism due to variable wind and load profiles. Wholesale power prices peaked at over £500/MWh in early 2021 due to a combination of low temperatures, low


wind generation, and high demand. While these events are relatively uncommon, they do demonstrate the need for grid operators to maintain sufficient capacity to achieve a safe operating margin. Such events are an opportunity to monetise flexible capacity. Using intelligent software to combine


knowledge of operating parameters with grid signals and market indicators, such as energy market price information, it’s possible to create the best running schedule for the CHP. The algorithms can then identify opportunities to trade any flexible capacity in the most appropriate markets. Dispatch signals from the energy


markets can be sent to CHP assets by interfacing with SCADA or local control rooms, making it possible to realise market value within short notice periods.


HAVING MORE INTELLIGENCE Deploying intelligent, dynamic management technology also increases control and monitoring over the whole CHP system. This enhanced level of visibility provides clarity over site energy costs; helps energy managers to understand and accommodate site and contract constraints; and minimises energy costs by reducing waste and inefficiencies. This approach enables operators


to identify when it’s best to plan maintenance to minimise revenue loss and provides insight into how to size a new CHP to maximise profitable operation.


Enel X UK www.enelx.com/uk/en


Figure 1: Static and dynamic operating schedules. The static schedule shows two CHPs – a 3.6MWe CHP unit in yellow and a 6MWe unit in orange, alongside the power price (blue line). The 3.6MWe CHP operates at 100% output 24x7, while the 6MWe unit operates at 100% during business hours. The dynamic operating schedule shows how the same units would respond to changes in power prices. The 3.6MWe CHP operates at 100% during business hours (8am – 8pm) but reduces output midday on 2/04 and 2/05 reacting to a dip in power price. The 6MWe CHP operates at 100% during business hours but shuts off completely midday 2/04 and 2/05 reacting to the dip in power price.


10 ENERGY MANAGEMENT - Summer 2021 www.energymanagementmag.co.uk


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