Optimization of biogas supply networks considering multiple objectives and auction trading prices of electricity

Abstract This contribution presents an hourly-based optimization of a biogas supply network to generate electricity, heat and organic fertilizer while considering multiple objectives and auction trading prices of electricity. The optimization model is formulated as a mixed-integer linear programming (MILP) utilizing a four-layer biogas supply chain. The model accounts for biogas plants based on two capacity levels of methane to produce on average 1 ± 0.1 MW and 5 ± 0.2 MW electricity. Three objectives are put forward: i) maximization of economic profit, ii) maximization of economic profit while considering cost/benefits from greenhouse gas (GHG) emissions (economic+GHG profit) and iii) maximization of sustainability profit. The results show that the economic profit accrued on hourly-based auction trading prices is negative (loss), hence, four additional scenarios are put forward: i) a scenario whereby carbon prices are steadily increased to the prevalent eco-costs/eco-benefits of global warming; ii) a scenario whereby all the electricity auction trading prices are multiplied by certain factors to find the profitability breakeven factor, iii) a scenario whereby shorter time periods are applied, and investment cost of biogas storage is reduced showing a relationship between cost, volume of biogas stored and the variations in electricity production and (iv) a scenario whereby the capacity of the biogas plant is varied from 1 MW and 5 MW as it affects economics of the process. The models are applied to an illustrative case study of agricultural biogas plants in Slovenia where a maximum of three biogas plants could be selected. The results hence present the effects of the simultaneous relationship of economic profit, economic+GHG profit and sustainability profit on the supply and its benefit to decision-making.