Timing and sizing of investments in industrial processes– the use of an optimization tool
2010 (English)Conference paper (Refereed)
Investments of different kinds are vital for industries to stay competitive. However, there are several issues that need to be considered before investing, e.g. the timing and size of the investment. In this paper a methodology is presented for analysing investments form the point of view of optimal size and timing. The energy systems optimization tool reMIND is used as the basis of the modelling, and has been used in several industrial energy systems studies for various purposes. reMIND is based on Mixed Integer Linear Programming (MILP) and has been further developed to consider investments of different kinds. The different constraints needed to model the investment properly are presented together with the variables included in the objective function. A simple case study is also included to illustrate how the method is used. The results from the case study show that the timing and size of the different investments change, depending on the size of the proposed increase in production rate.
Place, publisher, year, edition, pages
Energy efficiency, Investments, MILP, Optimization
Engineering and Technology Energy Engineering
IdentifiersURN: urn:nbn:se:liu:diva-71876ISBN: 145630318XOAI: oai:DiVA.org:liu-71876DiVA: diva2:455161
23rd International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems, 14-17 June, in Lausanne, Switzerland