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ISSN 1845-4372

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The Dispersion of Costs in Integrated Heat and Electricity Generation Facilities Owned by the Croatian Electric Utility Company

The most important scope of the project is to provide consulting services to HEP Generation on the most efficient way to disperse generation costs between electricity and heating in existing cogeneration facilities in a liberalised energy market.

The study examines distribution modalities for overall generation costs within facilities in which electricity and heat are generated in a tied process. In such processes, it is not possible to directly separate and follow costs related to each product (electricity and heat). The study elaborates methods based on economic principles and market energy prices and applies them so as to allow the separation of costs in each examined facility. Recommendations for an adequate methodology are obtained by comparing the results of the cost distribution process which are calculated by applying different methods and sensitivity analyses. In addition, a method for calculating fixed and variable costs is also suggested.

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