Abstract
Energy demand continues to rise, intensifying fossil fuel crises impacts. Power plants contribute significantly to meeting energy demand, highlighting the urgency of introducing more renewable energy solutions like combined heat and power (CHP). However, imbalanced supply and demand necessitates incorporating thermal energy storage (TES) to enhance flexibility. This study proposes a mixed integer linear programming model that optimally integrates TES with CHP to meet electricity, heat, and gas demands in an urban area. It adopts a novel dynamic efficiency approach for TES, which considers high discharge rates as the tanks gradually empty, and low charging rates as the tanks reach full capacity. To demonstrate the effectiveness of the model, Seoul, a metropolitan city, is used as a representative case study. Results showcase substantial cost savings through seamlessly integrating CHP with TES. Furthermore, a sensitivity analysis evaluates supply uncertainties' implications.