Title: Novel cogeneration cost-sharing mechanism for energy savings and emission reduction in China

Authors: Yongxiu He; Tian Xia; Bing Wang; Wei Xiong; Jianhui Wang

Addresses: School of Economics and Management, North China Electric Power University, Zhu Xin Zhuang, Bei Nong Road No. 2, Changping District, Beijing 102206, China ' School of Economics and Management, North China Electric Power University, Zhu Xin Zhuang, Bei Nong Road No. 2, Changping District, Beijing 102206, China ' School of Economics and Management, North China Electric Power University, Zhu Xin Zhuang, Bei Nong Road No. 2, Changping District, Beijing 102206, China ' School of Economics and Management, North China Electric Power University, Zhu Xin Zhuang, Bei Nong Road No. 2, Changping District, Beijing 102206, China ' Decision and Information Sciences Division, Argonne National Laboratory, 9700 S, Cass Avenue, Argonne, IL, USA; School of Economics and Management, Shanghai University of Electric Power, Ping Yang Road No. 2103, Yangpu District, Shanghai, China

Abstract: Cogeneration can improve the efficiency of energy utilisation, improve energy savings and reduce carbon emission. However, China currently suffers unreasonable cogeneration pricing and cost sharing, which has seriously hampered the development of cogeneration power plants. Based on the production process of cogeneration, this paper analyses the principles of thermoelectric cogeneration and energy savings. We research a variety of cost-sharing methods including two attributed to power and another three focused on heat. We then propose a new cost-sharing method to take into account both heating and generation. A real thermal power plant of 600 MW is selected as a case study. Our results show that the reduced condensation losses of heat extraction could have saved 87,088.43 tons of standard coal in 2010, which is equivalent to CO₂ emission reductions of 226,430 tons, if the proposed cost-sharing method had been used. Finally, policy suggestions are made to ensure the sustainable development of cogeneration and promote energy savings and emission reduction in China.

Keywords: cogeneration pricing; cost-sharing mechanism; energy saving; emissions reduction; global warming; China; carbon emissions; thermoelectric cogeneration; thermal power plants; condensation losses; heat extraction; carbon dioxide; CO2.

DOI: 10.1504/IJGW.2014.058755

International Journal of Global Warming, 2014 Vol.6 No.1, pp.58 - 78

Received: 27 Sep 2012
Accepted: 09 Mar 2013
Published online: 02 Jul 2014 *

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