Maximizing flare gas power generation for the design of an optimal energy mix

Abstract

A major goal of the Sustainable Energy for All (SE4ALL) Initiative is to improve energy efficiency through an energy mix. To assist oil-producing nations in improving their energy efficiency with respect to flare gas management, it is imperative to design an energy mix that combines gas-powered and renewable energy sources. For these nations to combat the environmental degradation caused by flare gas, an optimal energy mix must be based on the maximum power that can be generated from flare gas. Towards this end, this study presents an application of the directional distance data envelopment analysis (DEA) model for estimating the required power. We applied our proposed methodology to selected nations under two different scenarios in order to determine whether data type impacted power estimates. In the first scenario, only positive data was modelled, while in the second scenario, both positive and negative real-world data were modelled. Based on initial results, the first scenario produced higher power estimates than the second scenario. For Indonesia, Iraq, Nigeria, and Venezuela, the estimated power output difference across both scenarios was 33.33%, 20.58%, 44.44%, and 2.13%, respectively. With Venezuela as a case study, and from a realistic and practical perspective, we estimated that 7050 MW of power could be generated from flare gas. Using this estimate, an optimal energy mix was designed for the nation that includes 40% gas-based power generation and 60% renewable energy. Moreover, the 40% gas proportion of the designed energy mix was found to satisfy the nation's energy shortage more than three times over in 2016. In light of our findings, we recommend our proposed methodology to policymakers as a means of improving energy efficiency through the design of energy mixes.