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Journal of Energy Engineering
Article . 2005 . Peer-reviewed
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Effects of Carbon Tax on Microgrid Combined Heat and Power Adoption

Authors: Jennifer L. Edwards; Jennifer L. Edwards; Ryan Firestone; Ryan Firestone; Chris Marnay; Chris Marnay; Afzal S. Siddiqui; +5 Authors

Effects of Carbon Tax on Microgrid Combined Heat and Power Adoption

Abstract

This paper describes the economically optimal adoption and operation of distributed energy resources (DER) by a hypothetical California microgrid (μGrid) consisting of a group of commercial buildings over an historical test year, 1999. The optimization is conducted using a customer adoption model developed at Berkeley Lab and implemented in the General Algebraic Modeling System. A μGrid is a semiautonomous grouping of electricity and heat loads interconnected with the existing utility grid (macrogrid) but able to island from it. The μGrid minimizes the cost of meeting its energy requirements (consisting of both electricity and heat loads) by optimizing the installation and operation of DER technologies while purchasing residual energy from the local combined natural gas and electricity utility. The available DER technologies are small-scale generators (<500 kW), such as reciprocating engines, microturbines, and fuel cells, with or without combined heat and power (CHP) equipment, such as water and space heating and/or absorption cooling. By introducing a tax on carbon emissions, it is shown that if the μGrid is allowed to install CHP-enabled DER technologies, its carbon emissions are mitigated more than without CHP, demonstrating the potential benefits of small-scale CHP technology for climate change mitigation. Reciprocating engines with heat recovery and/or absorption cooling tend to be attractive technologies for the mild southern California climate, but the carbon mitigation tends to be modest compared to purchasing utility electricity because of the predominance of relatively clean central station generation in California.

Country
United States
Keywords

690, Optimization, policy and economy, Consumption, Mitigation, Policy And Economy, Natural Gas, Climates, Energy planning, Absorption, Environmental Energy Technologies, Electricity, Engines, 32 Energy Conservation, Space Heating, Carbon Emissions Combined Heat And Power Chp Distributed Energy Resources Der Distributed Generation Dg Economic Optimisation Microgrid, Water Carbon Emissions Combined Heat And Power Chp Distributed Energy Resources Der Distributed Generation Dg Economic Optimisation Microgrid, Carbon, Commercial Buildings, 29 Energy Planning, And Utilization, 30 Direct Energy Conversion, Heat Recovery, Carbon emissions Combined heat and power CHP Distributed energy resources DER Distributed Generation DG Economic optimisation Microgrid., Fuel Cells, Energy planning, policy and economy, 03 Natural Gas, Simulation

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