Study on Feasible Gas Price Formulation Principle for BCHP in China

Taking three cities in China — Shanghai, Beijing and Chengdu — as examples, under different power price and natural gas price policies, and at the same output level, this paper compares Building Cooling Heating and Power system (BCHP) with the other four cooling/heating sources systems by economic analysis. This paper calculates Life Cycle Cost (LCC) of the five systems to determine which the best is and which the worst is. The author compares the LCC of power-driven cooling/heating systems with that of gas-driven systems especially when power users should pay the basic electricity cost according to the maximum power demand (MPD) or transformer capacity. This paper defines price ratio of electric power to natural gas, builds first-order linear regression equation of equivalent uniform annual cost (EUAC) ratio of BCHP to power-driven air source heat pump to calculate the feasible price ratio of electric power to natural gas. Accordingly, the author suggests that government should give preferential natural gas price subsidies policies to BCHP users.