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

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

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.

Suggested Citation

  • Ling, Wen Choong & Verasingham, Arati Banu & Andiappan, Viknesh & Wan, Yoke Kin & Chew, Irene M.L. & Ng, Denny K.S., 2019. "An integrated mathematical optimisation approach to synthesise and analyse a bioelectricity supply chain network," Energy, Elsevier, vol. 178(C), pages 554-571.
  • Handle: RePEc:eee:energy:v:178:y:2019:i:c:p:554-571
    DOI: 10.1016/j.energy.2019.04.141
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    1. Mohd Yahya, Nur Syahira & Ng, Lik Yin & Andiappan, Viknesh, 2021. "Optimisation and planning of biomass supply chain for new and existing power plants based on carbon reduction targets," Energy, Elsevier, vol. 237(C).
    2. Islam Hassanin & Matjaz Knez, 2022. "Managing Supply Chain Activities in the Field of Energy Production Focusing on Renewables," Sustainability, MDPI, vol. 14(12), pages 1-33, June.

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