Techno-Economic Dispatch Analysis of a Case Study Consisting of Micro Gas Turbines Using Real-Time Data

Abstract The high share of renewables has a significant role in decarbonization targets. However, it increases the intermittency of the power supply and disrupts the optimal operation and grid reliability. This raises the costs for the system and the end-users. To avoid such costs, distributed and dispatchable power generation technologies like small scale combined heat and power systems (CHP) should be promoted to avoid transmission losses and fulfill the energy needs of customers. In this regard, micro gas turbine (MGT) technology can be considered a promising and attractive solution through its environmentally friendly operation and fuel flexibility. Within the scope of this paper, such a solution is proposed as a system consisting of MGTs for CHP purposes to capture the advantage derived from the potential gap between electricity and gas tariff prices for public organizations in Italy. The analyses are based on expected spot power and gas prices traded on the forward markets and actual tariff prices to show the real potential. A specific case study, consisting of 14 buildings of the University of Genoa (UniGe) in Italy has been studied, focusing on using MGTs for CHP as an alternative for the existing energy solution which is electricity and natural gas import from the national grid. A real-time energy monitoring system for the buildings is available at present. The proposed system considers all data points for the consumption and generation capacity of MGTs and optimizes the operational schedule of MGTs based on the electricity and heat demand together with the power and gas prices according to the time zones. Then a comparison is made between the current situation, which is the electricity import from the grid with a variable tariff; and the proposed system, based on net present value (NPV), internal rate of return (IRR), return on investment (ROI), and payback period. Further analysis is performed to demonstrate the opportunities to use hydrogen as an alternative fuel in MGTs and breakeven hydrogen price is calculated to show where it becomes more attractive than natural gas for this case.