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An integrated mathematical optimisation approach to synthesise and analyse a bioelectricity supply chain network

Ling, Wen Choong, Verasingham, Arati Banu, Andiappan, Viknesh, Wan, Yoke Kin, Chew, Irene M.L., Ng, Denny K.S.
Energy 2019 v.178 pp. 554-571
bioelectricity, biomass, case studies, decision making, economic evaluation, power plants, supply balance, supply chain, Malaysia
This paper presents an integrated mathematical optimisation approach to synthesise a bioelectricity supply chain network with minimal costs. Detailed economic evaluation was performed to determine the optimum location of centralised or decentralised biomass pre-treatment and power plants. Once the optimum bioelectricity supply chain network is established, input-output modelling of the network is formed. Next, feasible operating range analysis is performed. A palm-based bioelectricity supply chain case study in Malaysia is used to illustrate the proposed approach. Based on the optimised results, a total of 80.90 MW of bioelectricity are generated with an estimated net present value of USD 123.94 million and a payback period of 5 years. Meanwhile, the feasible operating range analysis indicated that the synthesised bioelectricity supply chain network possessed multiple feasible operating ranges; 5.06–10.04 MW, 11.88–36.08 MW and 44.26–101.16 MW. Based on the result, the decision makers can determine the potential of the future bioelectricity projects according to different seasons of supply and demand variations.