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ABSTRACT
This paper aims to design and integrate virtual power plant (VPP) into a geographically dispersed production-distribution network for attaining environmental sustainability goal. The VPP is comprised wind turbines, photovoltaics, combined heat and power, and energy storage units. The proposed VPP-based supply chain design model makes strategic allocations on renewable capacity as well as scheduling production, inventory, transportation, and energy generation and trading decisions. The model represents a first-of-its-kind in planning a multi-layer supply chain network in which renewable-based electric-thermal cogeneration is coordinated in production-climate nexus. The study yields the following findings. First, products with larger energy use opt to be made in locations with stronger sunshine or wind profile despite higher transportation costs. Second, the time-of-use rate greatly stimulates the installation of onsite photovoltaics and energy storage. Third, under flat utility rate, reducing energy storage cost has limited benefit to the cost savings of the supply chain operations.
GRAPHICAL ABSTRACT
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No potential conflict of interest was reported by the author(s).
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Notes on contributors
Fei Sun
Fei Sun received her PhD in Materials Science, Engineering, and Commercialization program at Texas State University. Her research interests focus on simulating and designing virtual power plant model with applications in manufacturing, logistics, and transportation. She has participated in USDA and NSF funded projects, and presented her research findings in IISE and INFORMS conferences. She also has several publications as first author and co-author in peer reviewed journals.
Tongdan Jin
Tongdan Jin received his PhD in industrial and systems engineering from Rutgers University. Currently he is a professor of industrial engineering at Texas State University. His research is cross-disciplinary and resides at the interface of operations management, renewable energy, and supply chain sustainability. He has authored and co-authored over 170 technical papers. His research has been sponsored by NSF, USDA, and the U.S. Department of Education. His book “Reliability Engineering and Services” was published by Wiley in 2019. He served as an associate editor of IISE transactions, and also served as NSF CAREER reviewer and panelists for CBET program.