Primal-Dual Learning Based Risk-Averse Optimal Integrated Allocation of Hybrid Energy Generation Plants under Uncertainty

Xiao Zhao, Xuhui Xia and Guodong Yu
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Xiao Zhao: Key Laboratory of Metallurgical Equipment and Control Technology, Wuhan University of Science and Technology, Ministry of Education, Wuhan 430000, China
Xuhui Xia: Key Laboratory of Metallurgical Equipment and Control Technology, Wuhan University of Science and Technology, Ministry of Education, Wuhan 430000, China
Guodong Yu: School of Management, Shandong University, Jinan 266510, China

Energies, 2019, vol. 12, issue 12, 1-15

Abstract: A groundswell of opinion in utilizing environmentally friendly energy technologies has been put forth worldwide. In this paper, we consider an energy generation plant distribution and allocation problem under uncertainty to get the utmost out of available developments, as well as to control costs and greenhouse emissions. Different clean and traditional energy technologies are considered in this paper. In particular, we present a risk-averse stochastic mixed-integer linear programming (MILP) model to minimize the total expected costs and control the risk of CO 2 emissions exceeding a certain budget. We employ the conditional value-at-risk (CVaR) model to represent risk preference and risk constraint of emissions. We prove that our risk-averse model can be equivalent to the traditional risk-neutral model under certain conditions. Moreover, we suggest that the risk-averse model can provide solutions generating less CO 2 than traditional models. To handle the computational difficulty in uncertain scenarios, we propose a Lagrange primal-dual learning algorithm to solve the model. We show that the algorithm allows the probability distribution of uncertainty to be unknown, and that desirable approximation can be achieved by utilizing historical data. Finally, an experiment is presented to demonstrate the performance of our method. The risk-averse model encourages the expansion of clean energy plants over traditional models for the reduction CO 2 emissions.

Keywords: Clean energy; plant location and allocation; risk-averse; Lagrange primal-dual (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
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