An efficient algorithm for bi-objective combined heat and power production planning under the emission trading scheme

•Define fuel mix setting for the bi-objective CHP environmental/economic dispatch.•Develop an efficient algorithm for constructing the Pareto frontier for the problem.•Time complexity analysis is conducted for the proposed algorithm.•The algorithm is theoretically compared against a traditional algorithm.•The efficiency of the algorithm is justified by numerical results.

The growing environmental awareness and the apparent conflicts between economic and environmental objectives turn energy planning problems naturally into multi-objective optimization problems. In the current study, mixed fuel combustion is considered as an option to achieve tradeoff between economic objective (associated with fuel cost) and emission objective (measured in CO2 emission cost according to fuels and emission allowance price) because a fuel with higher emissions is usually cheaper than one with lower emissions. Combined heat and power (CHP) production is an important high-efficiency technology to promote under the emission trading scheme. In CHP production, the production planning of both commodities must be done in coordination. A long-term planning problem decomposes into thousands of hourly subproblems. In this paper, a bi-objective multi-period linear programming CHP planning model is presented first. Then, an efficient specialized merging algorithm for constructing the exact Pareto frontier (PF) of the problem is presented. The algorithm is theoretically and empirically compared against a modified dichotomic search algorithm. The efficiency and effectiveness of the algorithm is justified.