A two-phase stochastic programming approach to biomass supply planning for combined heat and power plants
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A two‑phase stochastic programming approach to biomass supply planning for combined heat and power plants Daniela Guericke1 · Ignacio Blanco1 · Juan M. Morales2 · Henrik Madsen1 Received: 26 September 2018 / Accepted: 21 May 2020 © Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Due to the new carbon neutral policies, many district heating operators start operating their combined heat and power plants using different types of biomass instead of fossil fuel. The contracts with the biomass suppliers are negotiated months in advance and involve many uncertainties from the energy producer’s side. The demand for biomass is uncertain at that time, and heat demand and electricity prices vary drastically during the planning period. Furthermore, the optimal operation of combined heat and power plants has to consider the existing synergies between the power and heating systems. We propose a solution method using stochastic optimization to support the biomass supply planning for combined heat and power plants. Our two-phase approach determines mid-term decisions about biomass supply contracts as well as short-term decisions regarding the optimal production of the producer to ensure profitability and feasibility. We present results based on ten realistic test cases placed in two municipalities. Keywords Mixed-integer programming · Stochastic programming · Combined heat and power plants · Biomass supply planning · Operational planning
1 Introduction The integration of different energy systems is one step toward a fossil-free energy system, which many developed countries target today. By integrating different energy systems, such as heat and power, a higher share of volatile renewable energies, e.g., wind energy, can be used efficiently (Lund 2007). In areas with large district heating networks, one way to achieve this integration is using combined heat * Daniela Guericke [email protected] 1
Department of Applied Mathematics and Computer Science, Technical University of Denmark, Richard Petersens Plads, 2800 Kgs., Lyngby, Denmark
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Department of Applied Mathematics, Escuela de Ingenierías Industriales, Málaga University, 29071 Málaga, Spain
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and power (CHP) plants that produce heat and power simultaneously. By co-optimizing the production of both, the efficiency of the system is increased while providing flexibility to the power grid and satisfying the heat demand in the district heating network. Due to the neutral carbon policies imposed by the authorities, a shift from traditional fuels to renewable resources is taking place. Denmark has a widespread use of district heating and CHP plants and the government supports the use of biomass to produce heat and power. With subsidies and tax benefits, it has become profitable for large CHP plants to change from, e.g., coal or natural gas to biomass (Danish Energy Agency 2017). The use of biomass as fuel for CHP plants raises some challenges in the planning of the supply and in the operation of the plant. Many diffe
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