Cost Allocation Methods

2020 ◽  
pp. 97-104
Author(s):  
Chris Domanski
Author(s):  
Xuemin Ye

For several decades, although many kinds of allocation methods for heat-electricity cost allocation were proposed, there are remarkable differences computed with those methods due to each method having its relative merit and limitation in application. Based on the different roles of anergy and exergy in the heat supply process of cogeneration, two novel methods including the simplified reduced exergy method (SREM) and reduced exergy method (REM) are established by introducing the concept of reduced exergy and available anergy. Those methods consider not only the energy differences in quantity and quality, but also the roles of available anergy and exergy. Some practical conditions for typical units are computed and compared with present methods and existing methods. Calculations verify the feasibility of SREM and REM and indicated that those two methods are more rational, convenient and practical than existing methods in applications.


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