Optimization of on-site renewable energy generation for industrial sites

Ruangpattana, Suriya, Klabjan, Diego, Arinez, Jorge and Biller, Stephan (2011) Optimization of on-site renewable energy generation for industrial sites. In: The 2011 IEEE PES Power Systems Conference and Exposition (PSCE): The Next Generation Grid - Putting It All Together, 20-23rd March, 2011, Phoenix, Arizona, USA.

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We consider the energy sourcing decision problem faced by industrial power consumers who must determine their long-term electricity procurement plan and need to evaluate various options to meet load requirements for their facilities including those which may involve on-site renewable generation. Other than sourcing from on-site renewable generation such as solar photovoltaic or wind, power can be purchased from spot markets or through a power purchase agreement, i.e. energy supply contract. We develop a mixed-integer linear model to make decisions that include investments in renewable generation, power purchases from spot markets, and amount sourced from supply contracts. Taking into account renewable energy certificates, the model's objective is to maximize revenue from trading renewable certificates minus the expected total costs of investing and operating on-site renewable generation, and purchasing from electricity markets. Real load data from manufacturing plants are used to illustrate a numerical case study for our model.

Item Type: Conference or Workshop Item (Paper)
Keywords: electricity markets; energy sourcing decision problem; energy supply contract; industrial power consumers; industrial sites; long-term electricity procurement plan; manufacturing plants; mixed-integer linear model; on-site renewable energy generation optimisation; power purchase agreement; renewable certificate trading; renewable generation investment; spot markets; supply contracts; decision making; electricity supply industry; integer programming; investment; linear programming; power generation economics; power markets; purchasing
Schools and Departments: University of Sussex Business School > SPRU - Science Policy Research Unit
Subjects: Q Science > QA Mathematics > QA0299 Analysis. Including analytical methods connected with physical problems
T Technology > T Technology (General) > T0055.4 Industrial engineering. Management engineering > T0057 Applied mathematics. Quantitative methods > T0057.6 Operations research. Systems analysis
T Technology > TA Engineering (General). Civil engineering (General) > TA0168 Systems engineering
T Technology > TK Electrical engineering. Electronics Nuclear engineering > TK1001 Production of electric energy or power
T Technology > TK Electrical engineering. Electronics Nuclear engineering > TK2896 Devices for production of electricity by direct energy conversion
Depositing User: Suriya Ruangpattana
Date Deposited: 04 Jul 2012 08:23
Last Modified: 04 Jul 2012 08:24
URI: http://sro.sussex.ac.uk/id/eprint/39820
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