A general optimization framework for the design and planning of energy supply chain networks: Techno-economic and environmental analysis

A general spatial optimization framework that relies on the use of a modified state-task network representation for design and planning problems in material and energy supply chain networks is presented. In brief, the proposed optimization framework considers for the tasks and states of the network: (i) the optimal selection and sizing of conversion, transfer and storage technologies, (ii) the capacity expansion for each technology over time, (iii) the inventory levels for storable states, (iv) the quantities of states converted or transferred through tasks, and (v) the optimal energy mix. Several variations of an illustrative design and planning problem of a mixed material and energy supply chain network have been solved effectively to study the trade-off between costs and emissions levels and different emissions regulation policies. A sensitivity analysis study with respect to alternative emissions caps and a multi-objective optimization example considering the conflicting objectives of total cost and emissions are also presented. The case studies showed that a more efficient way for emissions reductions is through regulation and emissions caps rather than increased emissions costs (i.e., 3.3% emissions reductions). Overall, the proposed optimization framework could be used to integrate various types of material and energy supply chain operations using a unified modeling representation towards the more efficient management of such interdependent networks under techno-economic and environmental aspects.