Gas turbines in a carbon-neutral society

10th International Gas Turbine Conference

14-15 October 2021

Paper ID Number (To be filled out by ETN)

TECHNO-ECONOMIC ANALAYSIS OF SMALL SCALE CCHP SYSTEMS FOCUSED ON

EMISSIONS PERFORMANCE

Erika Rodriguez Aleman Jafar Al Zaili Abdulnaser I. Sayma

Lecturer in Power and Propulsion at Professor of Energy at Department of
Department of Mechanical
Department of Mechanical Mechanical Engineering and
Engineering and Aeronautics
Engineering and Aeronautics Aeronautics
City, University of London CG04, City, University of London C111,
City, University of London
Tait Building Tait Building
Northampton Square, London, EC1V
Northampton Square, London, EC1V Northampton Square, London, EC1V
0HB, United Kingdom
0HB, United Kingdom 0HB, United Kingdom
erika.rodriguez-aleman@city.ac.uk jafar.alzaili@city.ac.uk a.sayma@city.ac.uk
+34 648543999 +44 2070408623 +44 070408277

ABSTRACT is then called combined heat, cooling and power (CCHP). In

The Combined Cooling, Heat and Power (CCHP) order to generate both heat and power, fuel is burnt to drive
market appears to be in a favourable condition for investors; the prime mover and generator to transform mechanical
the ever-growing energy demand and the increasingly strict energy into electrical energy. To date, the following prime
air quality targets foster, even more, CCHP applications. movers are used: reciprocating internal combustion and
The objective of this study is to firstly assess the Stirling engines, gas and steam turbines and fuel cells.
economic convenience of CCHP systems through a spark
spread and carbon valuation analysis up to 2050. Secondly, CCHP for Urban Application
to compare the economic and emissions performance of Distributed generation (DG) has diverse benefits.
different prime movers for densely populated urban areas, However, having the energy production process closer to the
focusing on the case of central London. Different scenarios end consumer, inevitably incurs the direct emission of
were considered to evaluate the impact of including noxious gases closer to the consumer and the surrounding
externality costs for carbon and NOx emissions. population. The pollutants concentration in the air, which is
The case study is based on the electricity, cooling and higher closer to the source of emissions, negatively impacts
heating demand correspondent to three buildings from City, the urban air quality. This is particularly significant with
University of London. The results of these models have been nitrogen oxides (NOx) and fine particulate matter (PM),
integrated and compared against consuming directly from which have been proven to have more imminent health risks
the National Grid and gas boilers. than other pollutants.
The systems comprising micro-gas turbines resulted in The government’s environmental strategy for London
the most economical and environmentally optimal amongst estimates that by 2025 gas-fired generation will become the
the evaluated systems. In particular, the combination of two main source of NOx, surpassing transportation (GLA,
400 kWe micro-gas turbine modules proved the most 2018). Furthermore, urban population is expected to
adequate for the university’s application due to high increase to 70% by 2050 (United Nations, 2018), where a
electrical efficiency, modularity and optimum sizing. 1% increase in population corresponds to a 2.2% increase in
energy demand (Spataru, 2017).
INTRODUCTION For this reason, despite the numerous advantages that
Combined heat and power (CHP) is the process in CHP urban applications can provide, the environmental and
which electricity and heat are simultaneously generated health implications should be carefully studied before
from one single energy source. If an absorption chiller is selecting the system’s prime mover. The reciprocating
used to produce cooled water for refrigeration, this process engine is the most widespread prime mover due to its low

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capital costs, fuel flexibility, modularity and the fact that it developed with improved emission performance, with
can be sized to any power output. However, it might not be notable advances in the field of nitrogen oxide emissions.
the best option from an emissions standpoint. Economic Savings: All the above-mentioned benefits
In this study, the application of micro-gas turbines is can be translated into economic savings: more efficient fuel
proposed. Gas turbines are widely used in larger systems, combustion and reduced losses imply lower fuel costs,
but their low electrical efficiencies at smaller scales made reduced emissions mean fewer tax charges and social
them economically unfeasible for most CHP applications. damage, a reliable supply is vital, especially for health care
However, recent technological advances have achieved applications where lives directly depend on proper
electrical efficiencies of 40.2% at design load (Jaatinen- machinery operation.
Värri et al., 2016). It is believed that the market will
continue expanding in this field now that it has been proven Incentives
to be a viable option. The CHP Quality Assurance Programme (CHPQAP) is
a government voluntary initiative that promotes a better
NOMENCLATURE application of combined heat and power in the UK by
CCHP Combined Heat, Cooling and Power monitoring and evaluating the different schemes and
CHP Combined Heating and Power supporting the most efficient throughout different
CO2 Carbon Dioxide incentives. The eligible CHPs are classified as ‘Good
DG Decentralized Generation Quality’ and can benefit from:
GE Gas Engine
GHG Greenhouse Gases Climate Change Levy
MGT Micro-Gas Turbine The Climate Change Levy (CCL) is a tax that affects
NOx Nitrogen Oxides businesses and public sectors and is charged on ‘taxable
PM Particulate Matter commodities’ such as electricity and fossil fuels used for
SG Spark Gap heating, lighting and other energy purposes. A qualifying
SS Spark Spread CCHP system is exempt from paying CCL on electricity and
NPV Net Present Value fuel used on-site. (HMRC, 2016).

COMBINED COOLING, HEAT AND POWER Carbon Price Floor

The implementation of CCHP systems in urban This is a UK government policy aimed to reinforce the
applications has increased in recent years, this can be EU Emissions Trading System, under this scheme, the
attributed to the many benefits they provide: Carbon Price Support (CPS) is a tax on carbon emissions
Improved Fuel Efficiency: A great advantage of CCHP that aims to decarbonise the UK’s electricity production by
systems is the increased fuel efficiency. In traditional power targeting fossil fuel driven plants. Good Quality CHP are
plants, only about 30% of the energy input is converted into exempt from paying CPS on fuel used for electricity
useful electrical energy, the other 70% is lost to the generation with self-supply purposes. (BEIS, 2019)
atmosphere as waste heat. Cogeneration and trigeneration
systems, however, use this rejected heat for space heating or Business Rating Exemption
to feed an absorption chiller for the purpose of cooling, Businesses containing a CHP scheme that is fully or
bringing up the overall system efficiency to 80% in most partially qualified as Good Quality are exempt from paying
cases. A more efficient combustion of fuel not only results the rate associated with such generation plant. (BEIS, 2019)
in an economic benefit but also in emissions reduction.
Distributed Generation: Ofgem defines DG as ‘an Capital Allowances
electricity generating plant that is connected to the First year allowances and the Annual Investment
distribution network rather than the transmission network’ Allowances scheme entitle an investor to fully claim the
(Ofgem, 2019). As the generation takes place closer to the first-year tax relief on qualifying energy-efficient
end consumer, distribution and transmission losses from technologies, allowing the deduction of the product’s
transporting the electricity along the power lines are expenditure to be discounted from the annual taxable profits
reduced, in most cases remaining only the losses from the in the tax year of purchase. (HMRC, 2019)
own site. Additionally, the possibility of more than one
energy source increases the security of supply. Micro-Gas Turbines
Reduced Emissions: The fact that less fuel is needed for Micro-gas turbines (MGTs) are promising to provide an
the same power output and that distribution and excellent solution to the urban energy demand. Their few
transmission losses are significantly reduced directly moving parts make them apt competitors for noise and
implies lower greenhouse gases and other pollutants. vibrations constraints, this translates into lower maintenance
Furthermore, as society becomes more conscious about air requirements and therefore longer lifespan. They also
pollution, new prime mover technologies are being provide high flexibility in terms of fuel and modularity to
achieve the desired power output (Wang et al., 2004). The

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very low NOx emissions avoid the need of buying catalytic are water vapour, carbon dioxide, methane, nitrous oxide
converters and in doing so, reduce the capital investment and ozone.
and consequently the payback period. On June 2019, the UK government became the first
Another great advantage is the possibility of avoiding major economy to sign legislation for a net-zero greenhouse
liquid lubricants, the previously mentioned few moving gas emission target. This is an improvement to their previous
parts in the gas turbine design allowed the implementation commitment in the 2008 Climate Change Act, which aimed
of new technologies such as air and magnetic bearings to for an 80% reduction in GHG emissions by 2050 with
protect the rotary shaft. Erasing the need for oil drainage and respect to 1990 levels.
filter changes contributes to even lower maintenance costs
as well as fewer maintenance hours, therefore achieving a The Impact of Used Engine Oil
better availability when compared to reciprocating engines. Used engine oil has devastating effects on the
However, the most important benefit would be the environment; a single litre can contaminate up to 1 million
elimination of the hazardous oil itself. litres of water (DG ENV, 2021). Lube oil is contaminated
with by-products produced during combustion, acquiring
ENVIRONMENTAL AND HEALTH IMPLICATIONS numerous hazardous substances such as aromatic
Air pollution is the largest environmental risk to human hydrocarbons, which are a recognised human carcinogen. In
health in the UK, and the fourth greatest threat to public order to avoid oil contamination and ensure safety for the
health after cancer, heart disease and obesity according to workers and the environment, used engine oil disposal must
the 2011 Department of Health Public Health Outcomes follow the appropriate procedures. However, some other
Framework. It accounts for more deaths than smoking, repercussions are not so easily avoided; fine particles of
while costing the UK economy over £20 billion a year. Only metals such as zinc, calcium, arsenic and lead from engine
in the UK, it is estimated that 40,000 early deaths are caused wear and corrosion often end up in used oil and are
due to air pollution, particularly because of particulate discharged into the environment through exhaust gases as a
matter and nitrogen oxides; worldwide, this number rises to result of oil consumption. Despite the existence of new
3 million (Royal College of Physicians, 2016). studies considering lubricating oil impact on PM emissions
that have shown alarming trends, this is a field that needs to
Particulate Matter be further explored in order to get conclusive results, but the
Particulate Matter (PM), is defined as any non-gas presence of fine metal particles in the exhaust gases
(liquid, solid or combination of both) particles existing in certainly implies its contribution in emissions.
the air, which can be from natural or anthropogenic sources.
PM are classified according to their size either as PM10 or SPARK SPREAD AND CARBON VALUTION MODEL
PM2.5 (fine particulate matter), referencing the diameter in The spark spread is a common method of reviewing the
nanometres respectively. Fine particulate matter is of special feasibility of a CHP system for investors; it is a very useful
concern, because of its smaller size, it has a devastating technique since it allows the simultaneous assessment of
impact on health; it can easily penetrate lung tissue and enter different parameters, in this case: gas, electricity and carbon
the bloodstream, travelling to the heart, brain and other valuation. Including carbon prices in this analysis allows the
organs. savings in CO2 emissions from using a cogeneration system
to be given a monetary value, providing a better indicator of
Nitrogen Oxides the benefits when compared against the base case of using
Nitrogen oxides (NOx) refer to the gases formed by the gas boilers and imported electricity from the National Grid.
combination of oxygen and nitrogen during the combustion The model features carbon prices based on UK non-
of fossil fuels, the most notorious being nitric oxide (NO) traded CO2 forecast (DBEIS, 2021) and electricity and gas
and nitrogen dioxide (NO2). These noxious gases have been prices based on National Grid projections. From these data,
proven to cause inflammation of the respiratory airways and two different analyses are conducted, the Spark Gap (SG)
a decrease in pulmonary function, as well as the formation and the Spark Spread (SS). The former represents the simple
of smog and acid rain. The government has publicly difference between the gas and electricity prices and gives a
announced intent in reducing NOx emissions with respect to rough indication of the economic feasibility of the plant. The
2005 baseline by 55% by 2020, upgrading to a 73% latter is a more complex way of assessing the CHP economic
reduction by 2030 (DEFRA, 2019) therefore, legislations performance that considers other factors such as the
reinforcing this target are expected in the future years. efficiencies of the prime mover, the boiler, and the overall
CHP system. The greater the difference between electricity
Greenhouse Emissions and gas prices, the more economical a CHP system is.
Greenhouse gases (GHG) cause the greenhouse effect Contrarily, if this difference is not enough, the installation
by absorbing radiant energy within the thermal infrared of the system would not be profitable since the annual
range and holding heat in the atmosphere, consequently benefits, if any, would never be able to compensate the
leading to global warming. The primary greenhouse gases initial investment.

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 70 300

60 250
50
200
40

£/ton CO2
£/MWh
150
30
100
20

10 50

0 0
2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055
Years
Spark Spread Spark Gap Gas Price Electricity Price Non-Traded Carbon Value

Figure 1: Spark Spread and Carbon Valuation Model

According to the National Grid’s projections, both the university’s possession since they constitute the base case.
whole sale prices for electricity and natural gas are expected The capital expenses comprise the costs correspondent to
to rise in the future. The difference in the rate of increase is the prime mover unit, the absorption chiller and gas
crucial to the economic convenience of CHP systems. compressor of each system. The discount rate was set to 6%
The electricity price is expected to rapidly rise in 2020, to account for the depreciation of money and materials.
reaching a more stable rate in 2030. The gas price shows a Maintenance costs can be fixed and variable, the latter
decelerating rate of increase over the years. The fact that the one being more arduous to predict. For this reason, the
electricity price is expected to always increase at a higher average cost per kWh was allocated for each of the
rate than the gas price reflects that the difference in their technologies based on historical data. The maintenance
prices will continually grow in the future, increasing the hours correspondent to the prime mover’s availability (Table
convenience of CHP applications with time. The carbon 1) were allocated randomly throughout the year by the
price trend shows a steep increase from 2030 onwards, program.
fostering the adoption of CHP units. This analysis was based The emissions impact was based on the following
on wholesale prices, and due to the increasing green energy externalities:
generation, the values might vary according to the
production of renewables. Carbon valuation
The carbon valuation gives a monetary value to the cost
ECONOMIC ANALYSIS of emitting one ton of carbon dioxide into the atmosphere.
The economic aspects considered in this study are: The government sets the carbon values for purposes of
• Price of natural gas evaluation and policy appraisals, although these are not
• Price of imported electricity currently monetized.
• Price of exported electricity The carbon footprint of the electricity and heat
• Capital investment generated onsite was easily calculated since the natural gas
• Maintenance costs consumption for the prime mover and gas boiler was known
• Discount rate from the analysis performed. However, the UK grid has
diversified in the past years, incorporating different
• Carbon footprint
electricity generation sources. For this reason, an emissions
• NOx emissions externality cost
factor provided by the Department of Business, Energy and
The prices for natural gas and electricity were based on
Industrial Strategy was considered to estimate the CO 2
the 2021 Prices of Fuels Purchased by Non-Domestic
emissions of each kilowatt-hour of imported electricity,
Consumers in the UK, published by the Department for
giving that the grid produces 0.30675 kg of CO2 per kWhe
Business, Energy & Industrial Strategy. The prices were
generated.
considered excluding the Climate Change Levy and
The carbon value considered for this study is based on the
corresponded to 14.16p/kWh for electricity and 2.11p/kWh
official non-traded sector from the UK government (DBEIS,
for natural gas. The exported electricity was also given a
2021), which as of 2021 is £77/ton of CO2; this corresponds
monetary value of 5.38p/kWh based on the Ofgem export
to outside of the EU Emissions trading scheme. This value
rate for non-solar generation.
is expected to rise as regulations get tighter approaching the
The capital investment considered in this study does not
2050 net-zero target. However, in this analysis, the value
include installation costs, as this parameter widely varies
will remain fixed since the projections of carbon valuation
with the site’s location and the complexity of the piping
are already assessed along with the spark spread.
system. Electric chillers and gas boiler costs are not
considered either as these are assumed to be already in the

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NOx emissions valuation losses were evenly distributed and added to formulate the
For NOx externality cost, the scenario of inner London yearly demand.
was considered as this is the location of City University. The
externality cost was obtained from the 2019 DEFRA’s Air
System 1 2 3 GE
Quality Damage Cost Guide and it accounts for the effects
of NOx pollution on human health, materials and crops. The
value for the inner London case was £100,000/ton, Electrical Output
400 800 570 772
considering that the exhaust gases from CHP applications kWe
are not at risk of direct inhalation as it occurs with vehicles’
fumes and therefore the impact is lower. Heat Output kWth 600 1200 860 834
Case Study
The university is located in central London and is Absorption Chiller
400 800 540 540
currently using a CCHP system operated by a reciprocating Power kWth
gas engine. This system is connected to three buildings and
its operational strategy is driven by the heating and cooling Prime Mover’s
97% 98% 98% 92%
demand load. Availability
Electrical
Efficiency at 40.2% 40.2% 33% 41%
Design Load
Absorption Chiller
70% 70% 70% 70%
Efficiency

Electrical Chiller
4.0 4.0 4.0 4.0
COP

Gas Boiler
70% 70% 70% 70%
Efficiency

NOx Emission
0.3 0.3 0.223 0.8
Factor g/kWhe
Figure 2: CCHP system
Oil Consumption
Along with the current gas engine system (GE system) - - - 0.3
g/kWhe
and the base case (importing electricity from the National
Grid and employing a gas boiler for space heating), three
Table 1: Technical specifications of the evaluated systems
other prime movers are going to be considered and
compared for the university’s case. These alternatives are all Each system features a different availability based on
micro-gas turbines, and for the purpose of this study, have the maintenance requirements; this is the first constraint
been hypothetically designed following a current existing considered when determining the CCHP’s working profile.
model and a model that is not yet commercialised. If the system is available to operate, the heat demand and
They have been denoted as system 1 (1 module), system the heat input required for the absorption chiller to meet the
2 (2 modules) and system 3 (3 modules). The prime mover cooling requirement are compared against the prime
of system 1 is a single 400kWe micro-gas turbine, system 2 mover’s operating threshold, defined by its part-load
comprises two modules of the latter, and system 3 has three efficiency. Below this threshold it would not be feasible to
modules of the market-available micro-gas turbine making use the CCHP and consequently the demand would be
a total of 570 kWe. The characteristics of the GE system and entirely met by the National Grid and gas boilers.
the 3 micro-gas turbine systems are summarized in the Table In the case of using the CCHP, the next step is
1. determining if the system would run at design load or at part
load to fulfil the heat and cooling demand combination
Operational Strategy considering the electrical part-load efficiency and
The heating, cooling and electricity demand profiles corresponding fuel consumption. Additionally, the micro-
(Appendix 1) were obtained from an unpublished study by gast turbine modules run independently, therefore one of the
Watts’ Group for City University where the specific demand modules could run at design load while the other at part-load
load is detailed for a sample day of each month in 30-minute or could even be shut down entirely.
intervals. These sample days were then extended over the The final step is to check if the system’s output is
corresponding span of each month and the estimated heat enough to fulfil the customer demands or if it would still be

5
necessary to import electricity (for running the electric
chillers or for meeting the electricity demand) or the use of
gas boilers (for space heating). Alternatively, excess
electricity generated by the system is sold back to the
National Grid at the export rate for non-solar generation.
In the event of liquid lubricants, the annual specific lube
consumption would be calculated with the annual electrical
generation and the prime mover’s performance
specification.

RESULTS
The results section is divided in emissions performance,
operational costs and discounted payback period and net
present value. This is to firstly understand the potential Figure 4: NOx emissions comparison
environmental and health impact of each system, secondly The production of nitrogen oxides depends on the prime
the annual economic performance, and thirdly to integrate mover technology. System 3 has the lowest emission factor,
the emissions performance in the economic analysis by resulting in the best performance.
giving a price valuation to the systems’ emissions.
Oil Consumption
Emissions Performance Oil consumption is only applicable to the GE system
since the MGT’s can benefit from cleaner alternatives as
Carbon Dioxide previously mentioned. This characteristic makes a
The carbon footprint of each system was calculated difference between the two technologies, the results show
considering emissions from the prime mover, the gas boiler, that the GE system consumes nearly one tonne of lube oil
and the electricity imported from the grid making use of the every year.
carbon emissions factor.
Operational Costs
The following figure represents the annual electricity
and natural gas costs correspondent to the use of the
different systems. It considers the prime mover’s natural gas
consumption cost as well as the boiler’s and imported
electricity. The base case corresponds to meeting the
customer’s demand without a CCHP unit.

Figure 3: Carbon footprint comparison

Carbon dioxide is directly related to fuel consumption.
System 2 shows the most distinguished annual carbon
savings; its high electrical efficiency leads to more efficient
combustion where less fuel is required for the same thermal
Figure 5: Annual operational costs comparison
output. The GE system also has high electrical efficiency,
but due to its limited operating range, it resorts more to the Despite having the lowest natural gas cost, the base case
grid and boiler, therefore increasing its carbon footprint. is the most expensive overall due to its high electricity costs.
The CCHP units have higher natural gas costs since through
Nitrogen Oxides this source they can generate both heat and power, lowering
NOx emissions were estimated with the emissions the need for importing electricity which is much more
factor for each prime mover and for the gas boiler. expensive than gas.
Emissions from the electricity imported from the grid were For this combined generation to be optimum, the CHP
not considered. should be sized correctly. Despite having high electrical
efficiency, system 1 exhibits high electricity costs since the

6
unit does not generate enough to meet the customers’ needs The capital cost contribution to the payback period is
and it relies on importing most of the electricity needed. For clear, systems GE and 1 having the shortest payback
this reason, it is the least profitable among the CCHP periods, as it would be expected from their low capital
systems regarding annual gas and electricity costs. expenses. This can explain the abundance of gas engines in
The cost performance of these systems is mainly CHP applications. Nonetheless, all technologies would be
determined by the unit’s efficiency and working profile. paid-back within a competitive time range.
This is reflected in system 3 cost performance, despite
having a better operating range its lower electrical efficiency
increases the fuel demand and therefore the cost. Contrarily,
the GE System has high electrical efficiency but limited
operating range, most of the customer demand being met by
the boiler and grid.
System 2, besides great electrical efficiency, is sized
accordingly to the demand. The imported electricity annual
cost is reduced by more than half concerning the base case
against a little increase in the natural gas cost.

Discounted Payback Period and Net Present Value

For a better understanding of these analyses, the
different capital expenses considered should be
Figure 8: NPV with no emissions valuation
contemplated first, where the costs included correspond to
the prime mover unit, absorption chiller and gas compressor The NPV results show that, although having short
of each CHP system as previously discussed. It is notable payback periods, systems GE and 1 do not prove to be the
the difference between gas engine and micro gas turbine most profitable over time. As previously discussed, the NPV
technologies, considering that system 1 is the smallest sized is calculated throughout the unit's lifespan. Despite having
and therefore the associated costs are lower. higher capital costs, system 2 provides the greatest annual
savings, and therefore it is the best option long-term.

Scenario 2: Including carbon valuation at £77/ton

Figure 6: CAPEX of the evaluated systems

Scenario 1: No emissions valuation

Figure 9: Discounted payback period including carbon valuation
The discounted payback periods of the systems when
carbon valuation is included follow the same trend as the
previous ones, although the values have decreased. This is
explained as all CHP units benefit from annual carbon
savings with respect to the base case. However, since carbon
production depends directly on fuel consumption, the most
efficient plants are those who have reduced their payback
period the most; these are systems 1 and 2.

Figure 7: Discounted payback period with no emissions valuation

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 Figure 10: NPV including carbon valuation Figure 12: NPV including carbon and NOx valuations
The carbon savings are also reflected in the NPV. In this
case, the values increase, giving place to more profitable CONCLUSIONS
projects. The same trend that for the payback period can be Both the reciprocating engine and the micro-gas
observed, where systems 1 and 2 profit the most. turbines have demonstrated a good economic performance
and have offered a reduction in the carbon footprint with
Scenario 3: Including carbon valuation at £77/ton and NOx respect to the base case of grid electricity and gas boiler.
externality at £100,000/ton However, the consideration of NOx social damage cost only
appeared beneficial for the micro-gas turbine CCHP
systems, as the application of a reciprocating gas engine
resulted in higher NOx emissions than the base case.
Moreover, the gas engine also presented the added drawback
of nearly one ton of lube oil consumed per year, where the
micro gas turbines comprised air or magnetic bearings
instead of liquid lubricants.
The different analyses have demonstrated that, for the
City university case, the application of two micro-gas
turbines (system 2) has outperformed the other systems
considered in this study, both when taking and when not
taking into account emissions impact. This can be attributed
to two factors:
• Its sizing, modularity and great operating range
Figure 11: Discounted payback period including carbon and NOx
allows the prime mover to meet great part of the customer
valuations
demands, thereby making it the system with the lowest
From the discounted payback period results in Figure electricity import and boiler working hours.
10, it can be seen that not all systems benefit from the • Its high electrical efficiency achieves lower fuel
addition of NOx social impact. This can be explained costs and reduced carbon footprint.
through the different emission factors the prime movers In all the scenarios studied, system 2 had a relatively
present; the micro-gas turbines offer better emission factors short payback period and the highest net present value
than the gas engine. System 3 shows the most significant among the options considered. It also presented the highest
decrease in the payback period, following the fact that it is carbon savings and the second lowest NOx emissions.
the unit producing the least NOx emissions. Contrarily, the The CCHP market continues to expand and the
GE system increased its payback period due to poor NOx existence of new micro gas turbines with improved
emissions performance. electrical efficiency should be of interest for investors,
The Net Present Value has yet increased for the micro- especially as new and more stringent emission regulations
gas turbines, the highest increment being for System 3, are being set as the energy demand continues to increase
although system 2 remains the best option. The GE system’s each year.
NPV has decreased by nearly £1m with the addition of NOx
social cost.

8
APPENDIX A ACKNOWLEDGEMENTS
This appendix presents the average annual electricity, The authors would like to thank City, University of
cooling and heating demand profiles for the case study.
Electricity Load Monthly Profiles
London for providing the data for their CCHP system and
energy demands. In particular, Erika Rodriguez would like
1600 to thank City for funding the internship that allowed the
1400 investigation and generation of this paper.
1200
Load demand (kW)

1000
800
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600
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