452. Many Roads to Rome: Near-Optimal Transition Pathways for Industrial Energy Systems Under Uncertainty
Invited abstract in session TC-46: Decarbonizing the industry and heating sectors, stream Energy Economics & Management.
Tuesday, 12:30-14:00Room: Newlyn 1.07
Authors (first author is the speaker)
| 1. | Hendrik Schricker
|
| Institute of Technical Thermodynamics, RWTH Aachen University | |
| 2. | Boyung Jürgens
|
| Institute of Technical Thermodynamics, RWTH Aachen University | |
| 3. | Maria Louise Schmitt
|
| Institute of Technical Thermodynamics, RWTH Aachen University | |
| 4. | Niklas von der Assen
|
| Institute of Technical Thermodynamics |
Abstract
Optimization models support the transition of industrial energy systems to low-carbon systems but face uncertainties in input data (e.g., energy prices) and model structure (e.g., decision-maker preferences). Stochastic programming addresses input data uncertainty by considering multiple scenarios. Modeling to Generate Alternatives mitigates structural model uncertainty by identifying near-optimal solutions. Intersecting near-optimal spaces across scenarios reveals near-optimal solutions robust to input data uncertainty. However, high-dimensional multi-year pathway optimization makes established methods for computing these intersections intractable.
We propose a scalable method that combines stochastic programming and Modeling to Generate Alternatives to directly explore intersections of high-dimensional near-optimal spaces without explicitly computing geometric representations. We apply our method to a sector-coupled industrial energy system and optimize multi-year pathways under natural gas phase-out by 2045, with uncertain natural gas, electricity, and CO2 prices.
We observe that scenario-optimal pathways do not lie in the intersection of near-optimal spaces. We identify over 23,000 near-optimal pathways, with at most 15% higher costs than scenario-optimal pathways. Wind turbines and PV systems emerge as must-have early investments. Our approach enables decision-makers to identify flexible decarbonization strategies and avoid lock-ins in energy transition planning.
Keywords
- Energy Policy and Planning
- Decision Analysis
- Stochastic Optimization
Status: accepted
Back to the list of papers