Determination of an economic energy supply structure based on biomass using a mixed-integer linear optimization model

Abstract

Biomass can be used for heat or power generation or for a combined heat and power generation in order to substitute fossil fuels. As a result of the low fossil fuel prices and the higher investment and operating costs of biomass-fired plants, the energy use of biomass has to be checked for every case in each application area. The preferred field of application is the rural area because of the reasonable relation between the potential of biomass and the transportation distances that have a great influence on the economic viability. The knowledge about the location of consumers as well as of the energy plants and the possible laying of a district heating pipe is important for the clarification of an optimal heat supply structure in an isolated area. A mixed-integer linear optimization model based on the dynamical evaluation of economic efficiency can help to find the most economical and ecological supply structure. The model has to be developed for three different types of operating companies. The influences of different parameters on the target function can be analyzed by defining scenarios and by running sensitivity analyses. The results show that the energy prices have the greatest influence on the economy.