This project investigates the potential for profit of applying Model Predictive Control (MPC) for production planning in a Combined Heat and Power (CHP) plant which produces heat for District Heating (DH) and electricity. The project is based in the field of energy and conducted as a case study of Horsens Kraftvarmeværk.

The MPC controller generates the production plan by use of an optimization problem which considers plant model, electricity prices, district heating demand and production costs. Horsens Kraftvarmeværk is modeled as a high abstraction level, hybrid state model.

The MPC controller has been tested and evaluated in simulation using empirical data provided by DONG Energy.

Two types of analyses have been conducted in this project, a deterministic and a forecast based analysis. The results showed that the forecast based analysis generated a profit of 99 % compared to the deterministic analysis. This is a good result considering the deterministic analysis provides a theoretical upper bound for the \gls{mpc} algorithm.