The economics of cogeneration and electric heat ptnnp processes are strongly dependent on the ratio between electricity and fuel prices. A high ratio value favors cogeneration and a low value the electric heat pump application.

In general the price of electricity will be time-dependent, varying from a high level during the daytime hours of working days to lower levels during the nights and on the weekends. This provides an opportunity for improving the economics of a heat supply system by applying a combination of cogeneration, electric heat pumps, and thermal storage and timing the operation of each of these elements in accordance with the level of the price of electricity.

In this article the calculated benefits of such a system concept are illustrated by performing a theoretical cost analysis. Potential applications include district heating and the heat and electricity supply of large buildings.

Units: SI