Optimal Decision Guidance for the Electricity Supply Chain Integration With Renewable Energy: Aligning Smart Cities Research With Sustainable Development Goals

Abstract

The evolution of the smart cities' research and the relevant discussion on well-being is challenging the design of policies, information systems, and computational methods toward the alignment to Sustainable Development Goals (SDG) of the United Nations. Sustainable GOAL 7-Affordable and Clean Energy-is the focus of this paper. The requirement to integrate certain levels of renewable energy sources into the electricity grids to meet sustainability measures creates unfavorable variability in the entire electricity supply chain and delays the integration of renewable energy sources into the energy systems. This paper introduces a methodology and an optimization model for the electricity supply chain that allows reducing the variability of the renewable energy sources supply by optimal planning of the supply chain operations. The methodology supports electricity decision makers to identify the optimal operation of the electricity supply chain, taking into account multiple objectives and supply chain designs, including innovative architectures. The multi-objective linearized optimization model allows regulating the flow rates of energy and water for the electricity supply chain. The methodology was evaluated, considering three possible integration architectures for the loads and real-time electricity pricing. For each of the studied architectures, the analysis showed the optimal dispatching to reduce the energy variation due to the increasing renewable energy penetration into the grid. The results show how the methodology can present decision makers with optimal operation of the supply chain, such that a minimum energy variation is achieved at a minimum cost. The key contribution of this paper to the agenda of the special section entitled “Urban Computing & Well-being in Smart Cities: Services, Applications, Policymaking Considerations” is multifold: It sets a scientific framework for the promotion of the SDG #7 and innovates in the design and deliverable of a fully functional eco-system for the optimization of the electricity supply chain. It also defines well-being as an affordable and clean energy primer.