Integrated Facility Location and Production Scheduling in Multi-Generation Energy Systems

TL;DR

This paper presents a comprehensive planning model for multi-generation energy systems that integrates strategic facility location and technology investment decisions with operational planning, demonstrating economic benefits and risk reduction.

Contribution

It introduces a long-term integrated model for facility location and multi-generation technology investment combined with operational decisions, highlighting the value of multi-generation technologies.

Findings

Multi-generation technologies reduce demand uncertainty.

Risk pooling occurs within and across facilities.

Economic benefits of integrated planning are demonstrated.

Abstract

In this paper, we investigate the energy system design problems with the multi-generation technologies, i.e., simultaneous generation of multiple types of energy. We propose a long-term planning model which integrates macro-level strategic decisions such as facility location and multi-generation technology investment, and micro-level operational decisions such as production planning and energy transportation. Our results illustrate the economic value of multi-generation technologies in lieu of the spatio-temporal demand uncertainty for energy. In particular, we show that the multi-generation technologies can reduce demand uncertainty by risk pooling both within and across different facilities.