Peak demand shaving by cogeneration

The authors present a methodology for calculating the optimal cogeneration facility capacity and operation suitable for demand-side peak shaving, ensuring a reliable service and economic utilization of the facility. This methodology takes into consideration steam conditions in the plant, electric load profile, fuel price, operating hours, plant critical load, power factor penalty, and economic indicators. The methodology depends upon increasing the shaving amount to increase the facility utility factor for improving its economy. The computer program developed for this study provides cogeneration facility capacity, costs, payback period, benefit to cost ratio, and facility utilization factor. The output of the program also contains improved load factor, reduced demand level, new contracting demand, future tariff evolution, and project cash flow table. The results of the application of the proposed methodology to an industrial company in Egypt have shown that it is technically and economically feasible to use a cogeneration facility for peak demand shaving