Economical Investigation of ICECHP Using Gasohol-A Case Study for Iran

Energy is one of the most important factors in strategic planning throughout the world and can be considered as a dominant driving force for the industry and world economy. Biofuels development and applications specially in the form of Combined Heat and Power using Internal Combustion Engine (ICECHP) is wide-spreading which is the subject matter of the present paper as its economical investigation is concerned. The followed methodology is based on electricity direct pricing and actual annual benefit methods considering producers and consumers viewpoints. This investigation revealed that in the case of electricity direct pricing method, for the consumers the use of bioethanol - gasoline blends (Gasohol) and ICE for CHP is uneconomical in all cases, and for the producers, E5 and E10 is economical. For the consumers, the case can be economical too with the grant of subsidy similar to the oil products. It can be concluded from the finding of the optimization process in the case of actual annual benefit method that market electricity price must be equal to its cost price and the subsidy must be devoted to the fuel instead of devoting it to the electricity. In this case, E5 is economical for the consumers and up to E15 is economical as for as producer is concerned.