The Economical Feasibility of Combined Heat and Power Systems in Energy Markets Based on Reliability, Using Dynamic Game Theory

The issue of economic and technical analysis of the combined heat and power systems (CHP) is one of the important steps in the feasibility study, installation, and policy implementation of cogeneration systems. Aside from improving the reliability of systems, the major goal of CHP technical feasibility studies is maximizing profits. This article is a proposal assessing the impacts of the energy reliability indices on the economic parameters of CHPs in a deregulated environment applying dynamic game. The reliability indices such as energy not supplied are applied to assess the effects of reliability on the economic feasibility of CHPs through the Monte-Carlo simulation. Also, the article studies the impacts of improving gas/water distribution networks, electrical/thermal repair rate reinforcements and reducing electrical/thermal failure rates on economic feasibility parameters such as nt present valu or initial rate of return. This article can be applicable for the generation companies who desire to invest and participate rationally in energy markets.