Introduction on Cost Allocation to Cogeneration Products

Abstract

Cogeneration of electricity and heat is a highly fuel-efficient process and is broadly applied for process steam supply in industries and heat supply in district heating systems. The cogeneration of the two different products in the same process requires appropriate models for allocation of costs and other expenses, such as fuel consumption, emissions, etc., to the cogenerated products. Methods applied are:

• The residual value method

• The electrical equivalent method

• The exergy method

• The calorific method