Economic and environmental multi-objective optimisation to evaluate the impact of Belgian policy on solar power and electric vehicles

Abstract

This research uses multi-objective optimisation to determine the optimal mixture of energy and transportation technologies, while optimising economic and environmental impacts. We demonstrate the added value of using multi-objective mixed integer linear programming (MOMILP) considering economies of scale versus using continuous multi-objective linear programming assuming average cost intervals. This paper uses an improved version to solve MOMILPs exactly. To differentiate optimal solutions with and without subsidies, the impact of policy on the Pareto frontier is assessed. We distinguish between minimising economic life cycle costs (complete rationality) and required investments (bounded rationality). The approach is illustrated using a Belgian company with demands for electricity and transport. Electricity technologies are solar photovoltaics and the grid; transportation includes internal combustion engine vehicles, grid powered battery electric vehicles (BEVs), and solar-powered BEVs. The impact of grid powered BEVs to reduce GHG emissions is limited, yet they are less costly than solar panels to decrease emissions. Current policy measures are found to be properly targeting rational investors who consider life cycle costs, while private (potentially bounded rational) investors often focus on required investments only.

Keywords:

• mixed integer programming
• branch and bound
• energy
• transport
• LCC
• LCA

Acknowledgements

The authors would like to give special thanks to Audrey Cerqueus (University of Nantes) for the ongoing support and her constructive remarks regarding this submission.

Disclosure statement

No potential conflict of interest was reported by the authors.

Note

Notes

1. As the sectors of heat and electricity and transport are the two largest contributors to global greenhouse gas emissions (International Energy Agency 2012), we focus in our LCA model on CO₂-eq emissions. Other category impacts such as fossil depletion, human toxicity, particulate matter formation, etc. are also assessed in the LCA, yet they are beyond the scope of the bi-objective optimisation model. Results are available from the authors upon request.

Additional information

Funding

Sebastien Lizin thanks the Research Foundation Flanders (FWO) for funding his postdoctoral fellowship under Grant 12G5415N, allowing him to revise the manuscript.