An integrated mathematical optimisation approach to synthesise and analyse a bioelectricity supply chain network

Wen Choong Ling, Arati Banu Verasingham, Viknesh Andiappan, Yoke Kin Wan, Irene M.L. Chew and Denny K.S. Ng

Energy, 2019, vol. 178, issue C, 554-571

Abstract: This paper presents an integrated mathematical optimisation approach to synthesise a bioelectricity supply chain network with minimal costs. Detailed economic evaluation was performed to determine the optimum location of centralised or decentralised biomass pre-treatment and power plants. Once the optimum bioelectricity supply chain network is established, input-output modelling of the network is formed. Next, feasible operating range analysis is performed. A palm-based bioelectricity supply chain case study in Malaysia is used to illustrate the proposed approach. Based on the optimised results, a total of 80.90 MW of bioelectricity are generated with an estimated net present value of USD 123.94 million and a payback period of 5 years. Meanwhile, the feasible operating range analysis indicated that the synthesised bioelectricity supply chain network possessed multiple feasible operating ranges; 5.06–10.04 MW, 11.88–36.08 MW and 44.26–101.16 MW. Based on the result, the decision makers can determine the potential of the future bioelectricity projects according to different seasons of supply and demand variations.

Keywords: Bioelectricity supply chain network; Palm oil; Feasible operating range analysis; Input-output modelling (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:178:y:2019:i:c:p:554-571

DOI: 10.1016/j.energy.2019.04.141

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