The paper analyzes the case of extracting steam by a electricity generation unit in order to
sale it to a district heating company. The methodology that has been followed to determine the
selling price of thermal energy is based on the estimate of marginal cost of substitution of lignite
generation of electricity by other technologies.
The marginal cost of substitution results from the examination of two alternative scenarios for
the operation and growth of electrical generation system both without and with steam extraction
from a specific lignite fired generation unit. The analysis showed that the marginal cost of
substitution due to steam extraction is 6.98 Euro/MWhth in real 2002 prices. By using this cost an
effective selling tariff has been designed.
(EN)
University of Peiraeus
