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Modelling renewable supply chain for electricity generation with forest, fossil, and wood-waste fuels

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  • Palander, Teijo

Abstract

In this paper, a multiple objective model to large-scale and long-term industrial energy supply chain scheduling problems is considered. The problems include the allocation of a number of fossil, peat, and wood-waste fuel procurement chains to an energy plant during different periods. This decision environment is further complicated by sequence-dependent procurement chains for forest fuels. A dynamic linear programming model can be efficiently used for modelling energy flows in fuel procurement planning. However, due to the complex nature of the problem, the resulting model cannot be directly used to solve the combined heat and electricity production problem in a manner that is relevant to the energy industry. Therefore, this approach was used with a multiple objective programming model to better describe the combinatorial complexity of the scheduling task. The properties of this methodology are discussed and four examples of how the model works based on real-world data and optional peat fuel tax, feed-in tariff of electricity and energy efficiency constraints are presented. The energy industry as a whole is subject to policy decisions regarding renewable energy production and energy efficiency regulation. These decisions should be made on the basis of comprehensive techno-economic analysis using local energy supply chain models.

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  • Palander, Teijo, 2011. "Modelling renewable supply chain for electricity generation with forest, fossil, and wood-waste fuels," Energy, Elsevier, vol. 36(10), pages 5984-5993.
    • Handle: RePEc:eee:energy:v:36:y:2011:i:10:p:5984-5993
    DOI: 10.1016/j.energy.2011.08.017
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    1. Al-Mansour, Fouad & Sucic, Boris & Pusnik, Matevz, 2014. "Challenges and prospects of electricity production from renewable energy sources in Slovenia," Energy, Elsevier, vol. 77(C), pages 73-81.
    2. Faissal Jelti & Amine Allouhi & Mahmut Sami Büker & Rachid Saadani & Abdelmajid Jamil, 2021. "Renewable Power Generation: A Supply Chain Perspective," Sustainability, MDPI, vol. 13(3), pages 1-22, January.
    3. Kostevšek, Anja & Cizelj, Leon & Petek, Janez & Pivec, Aleksandra, 2013. "A novel concept for a renewable network within municipal energy systems," Renewable Energy, Elsevier, vol. 60(C), pages 79-87.
    4. Palander, Teijo & Haavikko, Hanna & Kärhä, Kalle, 2018. "Towards sustainable wood procurement in forest industry – The energy efficiency of larger and heavier vehicles in Finland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 100-118.
    5. Osmani, Atif & Zhang, Jun, 2013. "Stochastic optimization of a multi-feedstock lignocellulosic-based bioethanol supply chain under multiple uncertainties," Energy, Elsevier, vol. 59(C), pages 157-172.
    6. Palander, Teijo & Voutilainen, Juuso, 2013. "A decision support system for optimal storing and supply of wood in a Finnish CHP plant," Renewable Energy, Elsevier, vol. 52(C), pages 88-94.
    7. Teijo Palander & Jari Takkinen, 2021. "The Optimum Wood Procurement Scenario and Its Dynamic Management for Integrated Energy and Material Production in Carbon-Neutral Forest Industry," Energies, MDPI, vol. 14(15), pages 1-19, July.
    8. Pérez-Fortes, Mar & Laínez-Aguirre, José Miguel & Arranz-Piera, Pol & Velo, Enrique & Puigjaner, Luis, 2012. "Design of regional and sustainable bio-based networks for electricity generation using a multi-objective MILP approach," Energy, Elsevier, vol. 44(1), pages 79-95.
    9. Islam Hassanin & Matjaz Knez, 2022. "Managing Supply Chain Activities in the Field of Energy Production Focusing on Renewables," Sustainability, MDPI, vol. 14(12), pages 1-33, June.

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