Energy dispatch optimization at Controlled Environment Agriculture sites with CHP: How energy utilization, storage, and market exports impact operational costs

Controlled Environment Agriculture (CEA) offers sustainable solutions for the food industry but faces significant financial and environmental challenges due to high energy demands. Combined Heat and Power (CHP) systems, enhanced with technologies like thermal and battery storage, absorption cooling, and carbon capture, can improve efficiency and performance of CEA facilities. In smart grid applications, CHP also enhances grid reliability and resiliency as a dispatchable energy resource. The role of CHP as a dual source of energy and CO₂ in CEA remains underexplored, particularly in terms of optimizing energy dispatch across multiple storage and utilization technologies to balance operational costs and environmental impacts. This paper presents a multi-objective mixed-integer linear program for optimizing energy dispatch at CEA sites, incorporating CHP and auxiliary technologies. A case study of a modeled 25-acre tomato greenhouse evaluates cost-optimized scenarios across different technology combinations. Furthermore, the analysis examines market participation by varying electricity export capabilities and market price factors. Results show that thermal energy storage for heating delivers superior performance compared to other auxiliary technologies. Integrating CHP and thermal storage reduces energy procurement costs by 18.94% and operational emissions (scope 1 & 2) by 24.34% compared to baseline technologies. Moreover, market participation in a scenario with CHP, thermal storage, and batteries demonstrates the potential to generate revenue and reduce net costs by 7.05% compared to scenarios without electricity exports. This study offers the CEA industry a comprehensive approach to evaluating and optimally integrating CHP with auxiliary technologies to reduce costs, lower emissions, and explore opportunities for energy market participation.