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BUSINESS COMPETITIVENESS OF RUSSIAN POWER PLANTS IN CURRENT MARKET SITUATION
Evgeny Lisin, Valery Lozenko, Ivan Komarov, Olga Zlyvko

ABSTRACT. The article studies the effects of cost distribution method in the combined production of heat and electrical power on the economic performance of the heat-electric generating plant in the modern Russian energy markets. It considers the features of the combined energy production when arranging centralized district heating, the structure and operation principles of the wholesale electricity market and local heat markets, the advantages and disadvantages of existing methods of cost distribution between the two types of energy products. Particular attention is paid to studying the efficiency of the cost distribution methods for different operation modes of the heat-electric generating plant during the year. The model analysis is used as the base for making conclusions about the economic feasibility of each of the analysed methods for different periods of the year based on the maximization of the economic effect of the power plant 's participation in the wholesale energy market and the local heat market .

KEYWORDS: energy economics, cogeneration heat and power plant, cogeneration, cost distribution methods, wholesale electricity market, local heat market, regulation, competitive ability, economic effect.

JEL classification: D24, D40, P51, Q41, Q48.