The effect of feed-in-tariff supporting schemes on the viability of a district heating and cooling production system

Combined cooling, heat and power systems represent an efficient alternative to supply heating and cooling demand compared to conventional boilers and air conditioner systems. However, considering the high level of upfront investment and the relatively long lifetimes, it is important to provide some...

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Bibliographic Details
Published inEnergy (Oxford) Vol. 134; pp. 438 - 448
Main Authors Jiménez Navarro, Juan Pablo, Cejudo López, José Manuel, Connolly, David
Format Journal Article
LanguageEnglish
Published Oxford Elsevier Ltd 01.09.2017
Elsevier BV
Subjects
Boilers
Combined cooling, heat and power
Combined heat and power
Cooling
Cooling systems
District heating
Effects
Energy
Energy policy
Feasibility
Feed-in-tariff
Heating
Investment
Optimisation
Risk reduction
Tariffs
Technology
Viability
Feed-in-tariff
Combined cooling, heat and power
Energy policy
Feasibility
Combined heat and power
Optimisation
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Summary:Combined cooling, heat and power systems represent an efficient alternative to supply heating and cooling demand compared to conventional boilers and air conditioner systems. However, considering the high level of upfront investment and the relatively long lifetimes, it is important to provide some form of long-term certainty to reduce the risk of deployment of these systems. To overcome this uncertainty, this paper describes a method to calculate an appropriate feed-in-tariff scheme to support investors and public authorities to foster the penetration of this technology in areas with high energy demands. It is subsequently tested in a scientific and technology park located in the south of Spain where different energy prices are studied. The results indicate that a feed-in-tariff is required to support the development of combined heating, cooling, and power systems, which not only improves the economic performance of the system, but also increases the utilisation of more efficient generation technologies such as combined cooling, heat and power systems. •An optimal sizing method for combined cooling, heat and power projects is proposed.•Combined cooling, heat and power projects at district level still require support.•Public support has to be specifically designed per project.
ISSN:0360-5442
1873-6785
DOI:10.1016/j.energy.2017.05.174