Technical and Economic Analysis of Low-Emissions Modernization of Existing Heating Plants in Poland

Abstract

An analysis is performed with regards to technologically outdated heating plants operating in many areas where fossil fuels such as coal and gas are utilized, in order to consider the alternatives of their modernization. By application of a chart using a variety of alternatives, the economic feasibility of executing two types of modernization of heating plants are explored: a single-fuel gas–steam CHP plant and a coal-fired heating plant to a coal-fired CHP plant with a condensing turbine. This study demonstrates how the selection of modernization technology is affected, in terms of profitability, by the value and variability in time of the price relationships between energy carriers, rapidly growing charges related to CO2 emission allowances, and costs depending on other pollutant emissions that originate from the operation of electricity and heat sources powered by fossil fuels. In both technical cases of modernization, lower prices of energy carriers coupled with CO2 emissions allowances lead to higher prices of electricity that can be sold as additional products following this modernization, and consequently, the specific cost of heat production in the repowered heat sources is lowered. The calculations were performed by the application of models of heating plant modernization applying continuous time notations, which offer the determination of the most suitable time of initiation of this modernization. Such relationships would be difficult to describe in the case of the use of traditional discrete models. In the case of a simultaneous increase in the prices of all main factors affecting the cost of heat generation, such as the price of gas, electricity and CO2 emissions, the fastest modernization of the heating plant to single-fuel gas–steam CHP provides the possibility of the best economic performance.

Insights from Poland on the long-run effect of energy productivity on environmental degradation: a Fourier ARDL-based approach

“…For the remaining variables which have positive coefficients, a unit rise, LGDP, LGLO, and LPEC have significant positive effects on CO 2 emissions by 0.115%, 0.263%, and 0.375%, respectively. These findings are in line with Hnydiuk-Stefan et al (2021), who find the causes of CO 2 emissions in Poland to be largely due to a lack of investment in renewable technologies, cross-boundary effects, and continuous consumption of coal as a primary energy source. The outcome of Breusch-Pagan-Godfrey test in Table 7 shows no heteroskedasticity since null hypothesis is not rejected, while in Table 8 (Breusch-Godfrey serial correlation LM test), no serial at up to 9 lags is observed.…”

Dilemmas around the Energy Transition in the Perspective of Peter Blau’s Social Exchange Theory

“…The possession of energy sources or energy generation technologies is therefore a tradable strategic resource, which makes it possible to gain and maintain power and dominance on a macro-social scale. Coal and lignite, which have so far been the dominant sources of energy for both electricity and heat, are increasingly being replaced by renewable energy sources [16], and temporarily-in accordance with the adopted transformation strategy-by natural gas [17]. The target direction of the changes does not arouse major social objections; however, the principles on which this process is taking place, indicating the existence of both overt and covert transformation projects connected with global interest groups, are becoming more and more often a subject of social debate, being an expression of fears for economic and political balance in the world.…”

Methodology for Modernizing Local Gas-Fired District Heating Systems into a Central District Heating System Using Gas-Fired Cogeneration Engines—A Case Study

“…Nevertheless, nowadays in Poland there are many coal-fired heat sources in use. Many of them are technologically outdated and require modernization, as was strongly highlighted in paper [38]. At the same time, electricity comes from power plants, which are also often coal-fired.…”

“…For example, paper [58] presents three scenarios using CHP to ensure the carbon neutrality of a selected heating system. Article [38] discusses the technical and economic possibilities of modernizing existing heating plants in Poland through the use of CHP. Attention was drawn to the fact that "selection of modernization technology is affected, in terms of profitability, by the value and variability in time of the price relationships between energy carriers, rapidly growing charges related to CO 2 emission allowances, and costs depending on other pollutant emissions that originate from the operation of electricity and heat sources powered by fossil fuels".…”