Multisources of Energy Contracting Strategy with an Ecofriendly Factor and Demand Uncertainties

Abbas Hamze, Yassine Ouazene, Nazir Chebbo and Imane Maatouk
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Abbas Hamze: Industrial Control, EDST, Lebanese University, Beirut 6573, Lebanon
Yassine Ouazene: Industrial Systems Optimization Laboratory University of Technology of Troyes, 10004 Troyes, France
Nazir Chebbo: Industrial section, Lebanese University Faculty of Technology, Saida 1600, Lebanon
Imane Maatouk: Industrial section, Lebanese University Faculty of Technology, Saida 1600, Lebanon

Energies, 2019, vol. 12, issue 20, 1-24

Abstract: This study presents a mathematical formulation to optimize contracting capacity strategies of multisources of energy for institutional or industrial consumers considering demand uncertainties. The objective consists of minimizing the total costs composed of the different types of energy contract capacity costs, penalty price, and an ecofriendly factor. The penalty price is charged on the demand of energy exceeding the total contract capacities. The ecofriendly factor encourages the use of renewable energy and reduces the traditional energy used in the optimal mix of energy sources. The proposed model is tested based on demand of energy inspired from real data. These numerical experiments are analyzed to illustrate the impact of encouraging the use of renewable energy sources by introducing the ecofriendly factor and the influence of penalty price and uncertainty in the demand of energy. The results show that in the presence of low penalty price or low uncertainty a large amount of ecofriendly support is needed for using more renewable energy sources in the optimal contract capacity combination.

Keywords: multisources of energy; optimal contract capacity; peak load demand; mathematical programming (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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