Stochastic optimization of hybrid electricity supply chain considering carbon emission schemes

This paper focuses on designing an optimal hybrid electricity supply chain (HESC) that considers carbon emission schemes and uncertainties. Both coal and biomass are used as fuel for electricity generation. Several carbon emission schemes, such as carbon cap and trade, carbon cap, and carbon tax, are considered. In addition, uncertainties such as coal mining rate, biomass yield rate, and electricity conversion rate are considered while designing HESC. A stochastic mixed integer linear programming (SMILP) model is developed that aims to determine optimal HESC under carbon emission schemes and uncertainties. A case study of North Dakota (ND) in the United States (US) is used to demonstrate the effectiveness of the proposed model. The results suggest that carbon emission schemes significantly impact the HESC design. Sensitivity analysis is further conducted to provide managerial insights.