A life cycle multi-objective economic and environmental assessment of distributed generation in buildings

• A lifecycle optimization model for distributed energy systems is developed.
• Model estimates costs and environmental impacts of meeting the building energy demand.
• Design and operating strategies to reduce costs and environmental impacts are discussed.
• Pareto frontiers of costs vis-à-vis environmental impacts are presented.
• Distributed generation can reduce the environmental impacts of the building sector.

Distributed generation, namely cogeneration and solar technologies, is expected to play an important role in the future energy supply mix in buildings. This calls for a methodological framework to assess the economic and environmental performance of the building sector when such technologies are employed. A life-cycle model has been developed, combining distributed generation and conventional sources to calculate the cost and environmental impacts of meeting the building energy demand over a defined planning period. Three type of cogeneration technologies, solar photovoltaic and thermal, as well as conventional boilers along with the Portuguese electricity generation mix comprise the energy systems modeled. Pareto optimal frontiers are derived, showing the trade-offs between different types of impacts (non-renewable cumulative energy demand, greenhouse gas emissions, acidification, eutrophication) and cost to meet the energy demand of a commercial building. Our analysis shows that according to the objective to employ distributed generation (reducing cost or environmental impacts), a specific design and operational strategy for the energy systems shall be adopted. The strategies to minimize each type of impact and the associated cost trade-offs by exploring the solutions located on the Pareto optimal frontiers are discussed.