EURO 2024 Copenhagen
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3500. Balancing Costs and Supply Security Risk in Renewable Energy Systems: A Bi-Objective Optimization Approach and an African-European Case Study

Invited abstract in session MC-24: Clean Energy Supply Chains, stream Sustainable Supply Chains.

Monday, 12:30-14:00
Room: 83 (building: 116)

Authors (first author is the speaker)

1. Veis Karbassi
Chair of Operations Management,, RWTH-Aachen University
2. Jörn Meyer
Chair of Operations Management, RWTH Aachen University
3. Grit Walther
School of Business and Economics, Chair of Operations Management, RWTH Aachen University

Abstract

The global net-zero transition requires new international energy links based on renewable energy carriers. Moreover, recent global energy supply disruptions emphasize the need to integrate risk into future energy systems. Against this background, we aim to construct affordable, secure energy supply chains for both importing and exporting countries by incorporating risk in energy system design. Our linear bi-objective quadratic optimization model analyzes total costs and security risk trade-offs in renewable energy production. Using the e-constraint in Python and Gurobi, we apply our model to a case of renewable energy production in Africa and its supply to Europe.
Our findings reveal how characteristics of exporting countries, e.g., socio-political, environmental, and technological features and overall network structures, impact costs and security risk. Contrary to common assumptions of marginal risk improvements leading to significant additional costs, our model shows efficient risk mitigation is possible without a substantial cost increase. Our research further confirms that Africa's renewable potential can both satisfy its domestic energy demand and contribute to Europe's energy imports, underscoring the continent's role in global energy transitions.
This work provides a comprehensive tool for decision-makers to evaluate cost efficiency vs. supply security trade-offs in renewable energy system design, enhancing resilience and reliability during global energy transition.

Keywords

Status: accepted

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