Volume 20: Sustainable Energy Solutions for a Post-COVID Recovery towards a Better Future: Part III

Efficiency Measurement of an Energy Planning Model Considering Cost, Emission, and Social Impact Sudlop Ratanakuakangwan, Hiroshi Morita

Abstract

This study proposes a modified energy planning model that considers a broad range of future uncertainties. Modifications to hybrid stochastic robust optimization and robust optimization methodology allow for the introduction of multi-objective functions that reflect the various dimensions of energy planning including cost, emission, and social impact. Changing the priorities of the objective functions generates different energy policies, which are then compared. Data envelopment analysis is applied to measure the energy efficiency of each optimal energy policy produced by the energy planning model. Energy efficiency is defined as the ability to satisfactory address five main aspects—cost, emissions, social impact, employment, and security. An updated power development plan for Thailand is used as an illustrative case study. Empirical analysis indicates that a policy that prioritize the environment first, followed by social impact and cost, is the most efficient among the five alternatives considered. Results from the case study offer quantitative support for policy makers seeking to devise an efficient energy policy that meets extensive requirements while still dealing with the bounds of uncertain future projections.

Keywords energy policy, efficiency measurement, stochastic robust optimization, robust optimization, data envelopment analysis