Optimum Replacement Policies of Conventional Energy Sources by Clean Ones Subject to Current Electri

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International Journal of Energy Science (IJES) Volume 4 Issue 1, February 2014 doi: 10.14355/ijes.2014.0401.01

www.ijesci.org

Optimum Replacement Policies of Conventional Energy Sources by Clean Ones Subject to Current Electricity Demand Maryam Parsa1, NasirUddin Ahmed*2, Mustapha C.E. Yagoub3 School of Electrical Engineering and Computer Science, University of Ottawa, ON, Canada mparsa@purdue.edu; *2ahmed@site.uottawa.ca; 3myagoub@site.uottawa.ca

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Abstract Developing optimum decision policy for gradual replacement of conventional energy sources by clean ones is an important field of current research and the main concern of this article. Eight main energy sources are considered and the decision policies are formulated with the objective of minimizing the implementation and environmental costs while meeting the electricity demand during the entire plan period. The selected energy sources are Coal, Petroleum, Natural Gas, Hydropower, Wind, Solar, Geothermal and Biomass. A nonlinear dynamic Lotka‐Volterra model, first introduced in Miah, Ahmed and Chowdhury [1] and later extended in Parsa, Ahmed and Yagoub [2], is used for modeling the dynamic changes in the level of electricity generation from each of the eight available energy sources. Optimal control theory is used to find the optimum decision policies for integration of renewable energy sources into the national power gird of any country. As a case study for our numerical results, official released data of United States Energy Information Administration website is used for the level of electricity generation from each of the energy sources mentioned above. Different scenarios are considered for the electricity demand. These range from U.S prediction for twenty years plan period to two percent annual growth rate for different plan periods of twenty and thirty years. The proposed methodology is general enough and hence applies to other energy problems with slight modifications based on the plannerʹs objectives. Keywords Mathematical Models for Energy Systems; Optimum Decision Policy; Electricity Demand and Environmental Concerns

Introduction With the increase of world population, and growth of the industrial complex in developing countries, electricity demand continues to rise. Associated with the rising demand, is a significant increase in the level of Green House Gas emissions due to electricity

generation from polluting energy sources such as Coal and Petroleum thereby threatening health of the general population. In this paper, we consider electricity generation from all the eight main energy sources and use the Pontryagin Minimum Principle to develop the optimum decision policies for the gradual replacement of conventional energy sources by clean ones. The decision policies for this transition are found while satisfying the electricity demand during the plan period and keeping the implementation and environmental costs as low as possible. Coal, Petroleum, Natural Gas, Hydropower, Wind, Solar, Geothermal, Wood and Biomass are the eight main energy sources that are considered in our model. In a recent paper of the authors [2], a similar model and method was proposed for different energy problems, satisfying the desired levels of electricity generation from each of the energy sources while minimizing the environmental and investment costs. In contrast, in this paper integration of renewable energy sources into the power grid is accomplished while the demand during the plan period is met and the environmental and implementation costs are kept to a minimum. Use of the Lotka‐Volterra model in energy systems and optimal control theory was proposed for the first time in [1]. There energy sources were classified into two categories: polluting and nonpolluting. Here we consider all the eight principal energy sources some of which are conventional and some renewable and present optimal policy of electricity generation from each of the sources. This article is mainly a continuation of our previous paper [2], with emphasis on satisfying the electricity demand during each time interval of the plan period. The official released data of U.S. Energy Information

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