Identification of optimal strategies for energy management systems planning under multiple uncertainties

Management of energy resources is crucial for many regions throughout the world. Many economic, environmental and political factors are having significant effects on energy management practices. leading to a variety of uncertainties in relevant decision making. The objective of this research is to identify optimal strategies in the planning of energy management systems under multiple uncertainties through the development of a fuzzy-random interval programming (FRIP) model. The method is based on an integration of the existing interval linear programming (ILP), superiority-inferiority-based fuzzy-stochastic programming (SI-FSP) and mixed integer linear programming (MILP). Such a FRIP model allows multiple uncertainties presented as interval values, possibilistic and probabilistic distributions, as well as their combinations within a general optimization framework. It can also be used for facilitating capacity-expansion planning of energy-production facilities within a multi-period and multi-option context. Complexities in energy management systems can be systematically reflected, thus applicability of the modeling process can be highly enhanced. The developed method has then been applied to a case of long-term energy management planning for a region with three cities. Useful solutions for the planning of energy management systems were generated. Interval solutions associated with different risk levels of constraint violation were obtained. They could be used for generating decision alternatives and thus help decision makers identify desired policies under various economic and system-reliability constraints. The solutions can also provide desired energy resource/service allocation and capacity-expansion plans with a minimized system cost, a maximized system reliability and a maximized energy security. Tradeoffs between system costs and constraint-violation risks could be successfully tackled, i.e., higher costs will increase system stability, while a desire for lower system costs will run into a risk of potential instability of the management system. Moreover, multiple uncertainties existing in the planning of energy management systems can be effectively addressed, improving robustness of the existing optimization methods. (C) 2008 Elsevier Ltd. All rights reserved.