Combined Heat and Power Plant Operations Optimisation under the Wholesale Electricity Market Conditions

This paper is an English translation of the 2015 Russian study published in Science and Education of Bauman MSTU, ISSN: 1994-0408, No. 8, pp. 195-238, adapted for an international audience. The present study proposes a new approach to optimising the operation of Combined Heat and Power (CHP) plants under the conditions of the Russian Wholesale Electricity and Capacity Market: a new optimisation criterion is formulated, and new linearised characteristic maps for steam and gas turbines are proposed. The optimisation problem is solved using mixed-integer linear programming methods. The approach was formulated and implemented within the development of the "System for Mathematical Technical and Economic Modelling of Power Plants" for seven CHP plants of OJSC "Quadra": Dyagilevskaya CHP, Kurskaya CHP-1, Lipetskaya CHP-2, Orlovskaya CHP, Kurskaya CHP SZR, Tambovskaya CHP, Smolenskaya CHP-2.