Developing a Green Path Power Expansion Plan in Indonesia by Applying a Multiobjective Optimization Modeling Technique
Publication: Journal of Energy Engineering
Volume 143, Issue 3
Abstract
This paper aims to apply a multiobjective optimization modeling technique to a power expansion problem evaluating two objectives functions: minimizing the power generating cost and minimizing emissions, between which there is a tradeoff. A convex curve is obtained representing the relationship between the generating cost () and emissions (ton). This represents a bad-luck curve where there is an increasing marginal cost to reduce 1 t of emissions. This is because most of the less-carbon-intensive power plants consume oil, which has the highest fuel cost. Instead of simply minimizing emissions, this paper argues that Indonesia needs to pursue technology to switch from steam coal subcritical technology to supercritical and ultra-supercritical technology to reduce emissions. It is further found that the generating cost will increase by less than 1.6% and yearly emissions can be reduced by about 6.9% by adopting supercritical technology. This implies that adopting ultra-supercritical technology can cut emissions by more than half. A squeezing effect is also found by adopting more-advanced steam coal technology. Thus, promoting renewable energy and gas utilization also should be enhanced. The green path power system allows both emissions and the generating cost to increase gradually, but with lower emissions than by minimizing the generating cost alone. It is thereby proposed that the current feed-in tariff for renewable energy also needs to be supported with an emissions reduction target.
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Acknowledgments
The authors would like to express gratitude to Dr. Djoko Prasetijo, who provided valuable comments and suggestions that improved the quality of this paper. They are very grateful to USAID SEADI Project who provided a grant to present this paper at the 13th International Convention of the East Asian Economic Association (EAEA), Singapore, 19–20 October, 2012.
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© 2016 American Society of Civil Engineers.
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Received: Sep 3, 2015
Accepted: May 26, 2016
Published online: Oct 25, 2016
Discussion open until: Mar 25, 2017
Published in print: Jun 1, 2017
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