optimization in the energy industry (energy systems)

[...]... management, Uncertainty in energy planning 1.1 Introduction Energy planning can be complicated Due to its techno-economic nature it was already complex in monopolistic times and has gone from ‘complex’ to ‘very complex’ thereafter First of all, it is important to explain what production planning in the energy industry or energy planning, respectively, means Production planning is the commercial and... implications of production planning decisions are coming more into the focal point of planning, leads to the question, whether production planning should be executed by the trading companies or the power plant owners There is good reason for both choices and a lot of internal struggles upon the right answer to the question is currently ongoing in many European utilities Depending on the final decision, it will... combinations of input data Part of this calculation can be an optimization calculation that is integrated in the trading strategy analysis tool The result of the trading strategy analysis is a sales plan which in turn leads to a production plan The benefits of such a new type of energy management system are very obvious: The user is now choosing a market strategy that reflects the uncertainty in the. .. future production planning systems There exist various input parameters which are put in order of decreasing volatility Hence, the most volatile parameter is the “imbalance price forecast” and the least volatile are “reserves commitments” The input to the planning are not just single-point forecasts but some form of uncertain or stochastic data These inputs enter into a trading strategy analysis module... orchestrated in a graphical user interface Once approved, the workflows are executed automatically at certain times or manually They are controlled by showing the actual parts of the workflow being successfully or unsuccessfully executed The services and the data inputs are combined and executed in the order of this workflow The results are stored in a time series management system and can be visualized in user-defined... promising to develop this kind of planning tool 2.1 Introduction The earth warming problem has been studied scientifically for many years [3] Now, this challenging problem is one of the most important issues in the world from both the political and economical point of view In all countries, governments are faced with the problem how to adopt the system of “Cap and Trade.” Especially, energy consuming industries,... Enterprise-Wide Model of Single Term The first model is applied for enterprise-wide planning in a single term The planner will use this model in the case study of an annual business plan and a production plan including judgment on investments for facility and purchasing carbon credits This model contains the selection problem Integer variables should be used for the selection of capital investment and purchase... enterprises in the world Heavily energy consuming industries, i.e., steel, power, refinery and chemical, have to establish a powerful management system to deal with the Earth warming problem The core of this management system is the planning function The planner should take more complicated criteria into consideration than before Some of the criteria conflict with each other At the same time, surroundings of the. .. will be used by the clients in multi-commodity production planning 16 T Franch et al Furthermore, the need for quick response times in real planning and bidding situations has to be fulfilled However, there is a growing need to enhance energy management systems to deal with uncertain (stochastic) input because of the requirements of the planning process as shown above Today’s planning systems for co-generation... used in German and European utilities, e.g Vattenfall Europe [3] and Stadtwerke Munich [6] It features among other things a graphical user interface that facilitates the development of the features of a model and explain its results within teams It also helps to explain the results to the business staff using their own language Now, it is time to face the next challenge: Efficient handling of uncertainty . and one of its working groups, held a symposium with the title “Stochastic Optimization in the Energy Industry. ” During the 78th meeting of the GOR working group “Praxis der Mathematischen Optimierung/Real World. experiences. The speakers from the research side and the software system suppliers examined different aspects of the whole subject – from the integration of wind energy, the chain of errors in nuclear. relative uncertainties in different exogenous factors, e.g., the prices in spot and futures trading, in load forecast, the expected input of wind energy, the water supply and the power stations’ availability.