Optimal sizing and operation of an industrial CHP system for a gas engine prime mover

Distributed generation has recently received a great deal of attention in Iran, as a result of which CHP systems have been employed more, due to their higher efficiency. This article, aims to optimize the system size considering the operating strategy of an industrial case study. Size and operating strategy for the steam boilers are optimized. The problem has been solved by using GAMS software to optimize the Net Present Value (NPV) of the plant from the plant owner’s point of view. A sensitivity analysis has also been performed to illustrate the optimal solutions variation caused by altering several key parameters such as fuel and electricity prices.