Evaluation of retrofitting gas-fired cooling and heating systems into BCHP using design optimization

The influence of energy prices on the feasibility of a retrofit is investigated. The retrofit describes the conversion of a system from HVAC to BCHP for energy-saving. This includes two optimal retrofit design models, of which the exergetic efficiency and annual costs (AC) are the separate objective functions. The retrofit scheme is planned to insert gas engines as prime movers into the original system, which have adopted gas-fired absorption chillers. The solutions of the optimizations show that such a retrofit can result in a remarkable rise in exergetic efficiency but is not viable with current energy prices. The contradictory solutions reveal a gap between the current energy prices system of the country and the present energy situation. Further investigation gives the critical lines of which each divides the coordinate plane of natural gas–electric prices into two parts of benefit and deficit. If the electric price rises to a certain extent, the retrofit will be advantageous both in benefit and energy-saving. So it is really an urgent task to reform the energy prices system in China. Conclusions may be helpful for other similar retrofit projects, and for legislators and the government which are responsible for improving the energy market in China.