Integrated electricity generation, CHPs, and boilers expansion planning: Alberta case study

The problem of integrated expansion planning is the problem of finding the optimum generation mix to meet the future energy demand with least cost. Different energy systems are traditionally assumed independent and planning is carried out separately. However, recently more attention is paid into the interdependencies of energy systems such as electricity and natural gas. In this paper, the demand for electricity and heat is taken into account to plan for the future installation and operation of electricity generation, the combined heat and power units (CHPs), and boilers. The problem is modeled as an optimization problem to minimize the installation and operation cost over a 20-year horizon. The proposed model is then tested on the Alberta energy system. The simulation results indicate the advantages of integrated planning over the non-integrated planning in terms of cost and GHG emissions.