“Spark spread” refers to the difference between the cost of electricity and the cost of fuel on a per-MMBTU basis. This metric is often considered when recommending equipment retrofits that require fuel switching. A spark spread of at least $12 per MMBTU is considered the threshold for economic viability of Combined Heat and Power (CHP) systems. However, this study shows that an increase in the electric utility rate has an impact on the spark spread required to maintain the economic viability of a CHP project. This challenges the paradigm that a single value for spark spread can be used as a “rule of thumb” for determining the economic viability of CHP projects. As utility rates increase, so does the importance of understanding the relationship between spark spread and the economic viability of projects.
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ASME 2008 2nd International Conference on Energy Sustainability collocated with the Heat Transfer, Fluids Engineering, and 3rd Energy Nanotechnology Conferences
August 10–14, 2008
Jacksonville, Florida, USA
Conference Sponsors:
- Advanced Energy Systems Division and Solar Energy Division
ISBN:
978-0-7918-4319-2
PROCEEDINGS PAPER
The Spark Spread as a Measure of Economic Viability for a Combined Heating and Power Application With Ideal Loading Conditions Available to Purchase
Rhett D. Graves,
Rhett D. Graves
Mississippi State University, Mississippi State, MS
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B. K. Hodge,
B. K. Hodge
Mississippi State University, Mississippi State, MS
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Louay M. Chamra
Louay M. Chamra
Mississippi State University, Mississippi State, MS
Search for other works by this author on:
Rhett D. Graves
Mississippi State University, Mississippi State, MS
B. K. Hodge
Mississippi State University, Mississippi State, MS
Louay M. Chamra
Mississippi State University, Mississippi State, MS
Paper No:
ES2008-54203, pp. 167-171; 5 pages
Published Online:
June 22, 2009
Citation
Graves, RD, Hodge, BK, & Chamra, LM. "The Spark Spread as a Measure of Economic Viability for a Combined Heating and Power Application With Ideal Loading Conditions." Proceedings of the ASME 2008 2nd International Conference on Energy Sustainability collocated with the Heat Transfer, Fluids Engineering, and 3rd Energy Nanotechnology Conferences. ASME 2008 2nd International Conference on Energy Sustainability, Volume 1. Jacksonville, Florida, USA. August 10–14, 2008. pp. 167-171. ASME. https://doi.org/10.1115/ES2008-54203
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