Cost Allocation to Cogeneration Products

Abstract

In general, cogeneration is the thermodynamic cycle of electricity and heat production in a common generation facility, namely a combined heat and power (CHP) plant. Each of the two cogeneration products, electricity and heat, may consist of different kinds of sub products with regard to their production costs or their thermodynamic grade. A CHP plant may generate cogenerated electricity and non-cogenerated electricity, e.g., in bypass or in condensing operation. Heat may be extracted from a steam turbine at different pressure levels. Thus, in many cases the cogeneration products will be more than two.