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A bilevel hybrid economic approach for optimal deployment of onshore power supply in maritime ports

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  • Wang, Lifen
  • Liang, Chengji
  • Shi, Jian
  • Molavi, Anahita
  • Lim, Gino
  • Zhang, Yue

Abstract

Onshore power supply (OPS) is an effective measure to curb at-berth emissions by allowing berthed ships to switch off their auxiliary engines and plug into the shore-side electric grid for their power demand. Despite OPS’s proven benefits in reducing emissions, port entities are often reluctant to adopt OPS technology due to the expensive electrical infrastructure retrofitting process. Hence, regulatory subsidies often play a key role in the promotion of OPS. This paper proposes a novel bilevel hybrid economic approach to jointly aid both the regulatory agency and the port entity to holistically increase OPS uptake. In the proposed model, the regulatory authority on the upper level acts first and develops the optimal hybrid incentive policy to minimize the negative environmental impacts caused by ships at berth. The port entity on the lower level then decides the most financially favorable and economically viable investment decisions regarding the selection and installation of OPS. The problem is formulated as a mixed-integer bilevel programming model and solved using a column and constraint generation method. The simulation-based case study shows the environmental and economic strength of the proposed hybrid economic approach compared to the conventional regulatory and market-based approaches.

Suggested Citation

  • Wang, Lifen & Liang, Chengji & Shi, Jian & Molavi, Anahita & Lim, Gino & Zhang, Yue, 2021. "A bilevel hybrid economic approach for optimal deployment of onshore power supply in maritime ports," Applied Energy, Elsevier, vol. 292(C).
    • Handle: RePEc:eee:appene:v:292:y:2021:i:c:s0306261921003780
    DOI: 10.1016/j.apenergy.2021.116892
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    References listed on IDEAS

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    1. Marcelo Amaral & Nuno Amaro & Pedro Arsénio, 2023. "Methodology for Assessing Power Needs for Onshore Power Supply in Maritime Ports," Sustainability, MDPI, vol. 15(24), pages 1-18, December.
    2. Abu Bakar, Nur Najihah & Bazmohammadi, Najmeh & Vasquez, Juan C. & Guerrero, Josep M., 2023. "Electrification of onshore power systems in maritime transportation towards decarbonization of ports: A review of the cold ironing technology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 178(C).
    3. Zhang, Yue & Liang, Chengji & Shi, Jian & Lim, Gino & Wu, Yiwei, 2022. "Optimal Port Microgrid Scheduling Incorporating Onshore Power Supply and Berth Allocation Under Uncertainty," Applied Energy, Elsevier, vol. 313(C).
    4. Xianfeng Xu & Ke Wang & Yong Lu & Yunbo Tian & Liqun Hu & Ming Zhong, 2023. "Research on Performance Evaluation Index System and Assessment Methods for Microgrid Operation in the Port Area," Sustainability, MDPI, vol. 15(20), pages 1-16, October.
    5. Ang Yang & Xiangyu Meng & He He & Liang Wang & Jing Gao, 2022. "Towards Optimized ARMGs’ Low-Carbon Transition Investment Decision Based on Real Options," Energies, MDPI, vol. 15(14), pages 1-16, July.

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