Aiming to obtain an optimum balance between economical profit and environmental protection, a cost-profit model based on heat balance is built up for urban refuse incineration power system, in which the air preheat temperature and oil consumption are taken as parameters, while the maximization of the incomes of the station is taken as the objective. Considering the steady burning as constraint, the influence of the varieties of throwing oil, as well as the electric price adjusting on optimum operation parameters and profits are analyzed according to the running process of urban refuse burning power plant. Three different government’s subsidy and punishments mode are introduced into the model due to the emission of trace organic matter to analyze the influence on the power station’s best running parameters and on the behavior of the power plants. Results reveal that the government’s subsidy to garbage treatment can restrain the function ways of rubbish power station effectively.

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