THERMAL SCIENCE

International Scientific Journal

Teijo Palander

,

Lauri Vesa

TACTICAL TECHNO-ECONOMIC ANALYSIS OF ELECTRICITY GENERATION FROM FOREST, FOSSIL, AND WOOD WASTE FUELS IN A HEATING PLANT

ABSTRACT
The Finnish energy industry is subject to policy decisions regarding renewable energy production and energy efficiency regulation. Conventional electricity generation has environmental side-effects that may cause global warming. Renewable fuels are superior because they offer near-zero net emissions. In this study, we investigated a heating mill's ability to generate electricity from forest fuels in southern Finland on a 1-year strategic decision-making horizon. The electricity-generation, -purchase, and -sales decisions are made using three different energy efficiency and forest technology rates. Then the decision environment was complicated by the sequence-dependent procurement chains for forest fuels (below-ground) on a tactical decision-making horizon. With this aim, fuel data of three forest fuel procurement teams were collected for 3 months. The strategic fuel procurement decisions were adjusted to the changed decision environment based on a tactical techno-economic analysis using forest technology rates. The optimal energy product and fuel mixtures were solved by minimizing procurement costs, maximizing production revenues, and minimizing energy losses.
KEYWORDS
renewable fuels, forest technology rate, energy efficiency
PAPER SUBMITTED: 2012-01-06
PAPER REVISED: 2012-02-29
PAPER ACCEPTED: 2012-03-05
DOI REFERENCE: https://doi.org/10.2298/TSCI120106118P
CITATION EXPORT: view in browser or download as text file
THERMAL SCIENCE YEAR 2012, VOLUME 16, ISSUE No. 3, PAGES [817 - 826]
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Tactical techno-economic analysis of electricity generation from forest, fossil, and wood waste fuels in a heating plant

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