Optimal control of combined heat and power station operation

Combined heat and power stations have become one of the most utilized units of district heating systems. These stations usually contain several boilers for burning fossil fuels and renewable resources used for heating up steam, which can be used either for residential and commercial heating or electricity generation. To ensure efficiency, a boiler should either run continuously (for at least a given period) on a power output higher than a given threshold or switch off. The optimal control of the plant operations should combine an efficient setup for the turbine and boilers in operation, reflecting the demand for steam and the price of electricity, and a schedule that describes which boilers should be in operation at a given time. This paper proposes a method for optimal control of combined heat and power station operation for a given time horizon. The method is based on a two-level approach. The lower-level models correspond to finding the optimal setup of the combined heat and power station parameters for an hourly demand for different kinds of steam. The upper-level model corresponds to the optimal schedule of the operations of the individual boilers, which is planned for the entire time horizon. The lower-level model is modeled as a mixed-integer linear programming problem and is solved using parametric programming. A dynamic programming algorithm solves the upper-level model with a rolling horizon. The validity of the proposed method and its computational complexity for different granularity of the time horizon, different ranges of the parameters, varying demand for various kinds of steam, and varying electricity prices are investigated in a case study. The presented approach can be readily applied to other control problems with a similar structure.