Regional energy supply optimization with multiple objectives

Abstract

An optimization model is presented which is suited to energy planning on the regional level within a free-market economy. A set of linear constraints determines which combinations of energy conversion processes are technologically feasible. Several objectives of energy planning are considered, most of them being related to cost, environmental impacts, or reliability of primary energy supply. Optimization of any one of the objectives is a linear programming problem. Utility functions over the objectives were assessed with several individuals. Optimization of these utility functions is a nonlinear problem, which is solved through the reduced gradient method. Various energy policy issues are investigated on the basis of the outlined methodology.