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Does power generation improve if it is connected to a waste heat system?

Consider a power station set up in the middle of a town with cold winters. In the first example it burns has, drives a turbine and cycles water back after some form of basic cooling loop.

In the second example the waste heat (after driving the turbine) is connected to a distributed heating system throughtout the town that heats buildings and pavements and so on. In this case the return loop is much lower temperature, say just above freezing.

In order to do work you need a temperature gradient, although I'm not sure if that is relevant here. On the one had there will be a bigger gradient between the boiled and cooled water, but on the other hand you need to use more energy to lift the temperature from the cooling loop to boiling.

How does the efficiency for purely energy generation compare in these cases?

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What you're thinking of is called district heating

District heating (also known as heat networks) is a system for distributing heat generated in a centralized location through a system of insulated pipes for residential and commercial heating requirements such as space heating and water heating. The heat is often obtained from a cogeneration plant burning fossil fuels or biomass, but heat-only boiler stations, geothermal heating, heat pumps and central solar heating are also used, as well as heat waste from factories and nuclear power electricity generation. District heating plants can provide higher efficiencies and better pollution control than localized boilers. According to some research, district heating with combined heat and power (CHPDH) is the cheapest method of cutting carbon emissions, and has one of the lowest carbon footprints of all fossil generation plants.

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Yes that is the context. I was trying to find out about the energy efficient of the power generation, ie KWh produced vs volume of gas burned

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this case the return loop is much lower temperature, say just above freezing.

No, return loop temp can never be colder than what cools it...

So unless your building is below freezing, the return loop won't be freezing.

Which is a good thing, because even almost frozen water has exceptionally poor flow rate.

Like, you're completely ignoring why a secondary loop is required, but even accounting for that it's just not a huge gain. Obviously you'd have primarycoming out at its hottest and heating the secondary after it's went thru whatever loop, but you'll still need to add extra heat unless it's an incredibly tiny and nearby secondary loop.

That's why most building that have their own boiler for energy used potable water heating and never really scaled up to heating buildings or melting sidewalks in the winter. Like, you'd only need that 3-6 months a year, it would take forever to recoup the cost of install. Most likely you wouldn't.

Every building with a boiler always needs hot water tho...

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If the loop is melting pavements it can return at just above freezing (or whatever you choose to design as a minimum)

My question was meant to be about power generation efficiency, ie watt-hours of electricity produced vs volume of gas burnt, in each case

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The difference in temperature between input and output of a boiler is not a contributing factor in turbine efficiency, as far as I know.

Being able to extract heat from the water after use in a turbine dramatically increases the overall system efficiency. I suppose it’s possible to use some for heating and once the temp drops below a useful level, the could be used in a heat pump. But few parts of the planet need 365 days of heat.

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