TY - JOUR
T1 - Design of Biomass Combined Heat and Power (CHP) Systems based on Economic Risk using Minimax Regret Criterion
AU - Ling, Wen Choong
AU - Andiappan, Viknesh
AU - Kin Wan, Yoke
PY - 2018/2/26
Y1 - 2018/2/26
N2 - It is a great challenge to identify optimum technologies for CHP systems that utilise biomass and convert it into heat and power. In this respect, industry decision makers are lacking in confidence to invest in biomass CHP due to economic risk from varying energy demand. This research work presents a linear programming systematic framework to design biomass CHP system based on potential loss of profit due to varying energy demand. Minimax Regret Criterion (MRC) approach was used to assess maximum regret between selections of the given biomass CHP design based on energy demand. Based on this, the model determined an optimal biomass CHP design with minimum regret in economic opportunity. As Feed-in Tariff (FiT) rates affects the revenue of the CHP plant, sensitivity analysis was then performed on FiT rates on the selection of biomass CHP design. Besides, design analysis on the trend of the optimum design selected by model was conducted. To demonstrate the proposed framework in this research, a case study was solved using the proposed approach. The case study focused on designing a biomass CHP system for a palm oil mill (POM) due to large energy potential of oil palm biomass in Malaysia.
AB - It is a great challenge to identify optimum technologies for CHP systems that utilise biomass and convert it into heat and power. In this respect, industry decision makers are lacking in confidence to invest in biomass CHP due to economic risk from varying energy demand. This research work presents a linear programming systematic framework to design biomass CHP system based on potential loss of profit due to varying energy demand. Minimax Regret Criterion (MRC) approach was used to assess maximum regret between selections of the given biomass CHP design based on energy demand. Based on this, the model determined an optimal biomass CHP design with minimum regret in economic opportunity. As Feed-in Tariff (FiT) rates affects the revenue of the CHP plant, sensitivity analysis was then performed on FiT rates on the selection of biomass CHP design. Besides, design analysis on the trend of the optimum design selected by model was conducted. To demonstrate the proposed framework in this research, a case study was solved using the proposed approach. The case study focused on designing a biomass CHP system for a palm oil mill (POM) due to large energy potential of oil palm biomass in Malaysia.
UR - http://www.scopus.com/inward/record.url?scp=85042916421&partnerID=8YFLogxK
U2 - 10.1051/matecconf/201815201006
DO - 10.1051/matecconf/201815201006
M3 - Conference article
AN - SCOPUS:85042916421
SN - 2261-236X
VL - 152
JO - MATEC Web of Conferences
JF - MATEC Web of Conferences
M1 - 01006
ER -