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Authors:  (Deok-Jin Kim, Byung-Ryeal Choi, ENECOS, Gwangyang-si, Chollanam-do, Korea, and Korea Energy Economics Institute)
Abstract:
When electricity and heat are produced from a combined-heat-and-power (CHP)
system or a co-generation system, the methodology for allocating the common cost to
each product cost is very important because it is directly related to the profits and losses
of the producer and the purchaser. There are various cost allocation methods. However,
there is no correct answer, which is a fundamental problem in the field of cost allocation,
and no methods can solve it clearly. In this chapter, the heat method, the work method,
the benefit distribution method, the efficiency method, the equal method, the enthalpy
method, the exergy method, the exergetic equal method, the exergetic work method, and
the index method are discussed, and they are applied to a gas-turbine co-generation, a
steam-turbine cogeneration, and a combined-cycle co-generation. Although these
methods cannot solve the conflict between producers and purchasers in terms of profits
and losses, they can help to determine the electricity cost and heat cost. 


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Cost Allocation of Electricity and Heat;pp. 271-309