An optimization-based negotiation framework for energy systems in an eco-industrial park

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13 Citations (Scopus)

Abstract

This work presents an optimization-based negotiation framework for plants in an eco-industrial park (EIP). The framework combines the principles of rational allocation of benefits with the consideration of stability and robustness of the coalition to changes in cost assumptions by analyzing its stability threshold. The stability threshold allows stakeholders to make informed managerial decisions concerning the current or future plant interactions in an EIP. The proposed framework is presented via a palm oil eco-industrial park (PEIP) case study consisting of a biomass tri-generation system (BTS), palm-based biorefinery (PBB) and palm oil mill (POM). The results of the case study indicate that the deserving annual cost savings allocation for BTS, PBB and POM are 38% (USD 2,100,000), 14% (USD 800,000) and 48% (USD 2,600,000) of the total annual cost savings respectively. Based on these allocations, the stability analysis determined that the PEIP coalition will stable as long as the symbiosis costs of BTS, PBB and POM fall within 37-46%, 10-30% and 20-25% of their respective raw material costs. Otherwise, the stability of the PEIP coalition is compromised and further action can be taken as stipulated in the proposed framework.

Original languageEnglish
Pages (from-to)496-507
Number of pages12
JournalJournal of Cleaner Production
Volume129
DOIs
Publication statusPublished - 15 Aug 2016

Keywords

  • Cooperative game theory
  • Cost savings allocation
  • Eco-industrial park
  • Energy systems
  • Negotiation framework
  • Stability analysis

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment
  • Environmental Science(all)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

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