A multi-period optimization model for energy planning with CO2 emission consideration

A novel deterministic multi-period mixed-integer linear programming (MILP) model for the power generation planning of electric systems is described and evaluated in this paper. The model is developed with the objective of determining the optimal mix of energy supply sources and pollutant mitigation options that meet a specified electricity demand and CO2 emission targets at minimum cost. Several time-dependent parameters are included in the model formulation; they include forecasted energy demand, fuel price variability, construction lead time, conservation initiatives, and increase in fixed operational and maintenance costs over time. The developed model is applied to two case studies. The objective of the case studies is to examine the economical, structural, and environmental effects that would result if the electricity sector was required to reduce its CO2 emissions to a specified limit.