Polygeneration Using Renewable

Resources: Cost Optimization Using Linear

Programming

Avishek Ray & Sudipta De

Process Integration and Optimization

for Sustainability

ISSN 2509-4238

Process Integr Optim Sustain

DOI 10.1007/s41660-018-0053-2

1 23
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 Author's personal copy
Process Integration and Optimization for Sustainability
https://doi.org/10.1007/s41660-018-0053-2

ORIGINAL RESEARCH PAPER

Polygeneration Using Renewable Resources: Cost Optimization Using

Linear Programming
Avishek Ray 1,2 & Sudipta De 1

Received: 3 April 2018 / Revised: 27 May 2018 / Accepted: 28 May 2018

# Springer Nature Singapore Pte Ltd. 2018

Abstract
Renewable energy-based electricity is an imperative need for sustainable development. If some other utility outputs can be generated
along with electricity then the levelized cost of electricity decreases due to better resource utilization. Solar, biomass and wind
resources are the inputs to the considered polygeneration system. The outputs of this polygeneration system are electricity, ethanol
and chill. Application of proper optimization algorithm is necessary for the proper design of the polygeneration systems. The
optimization is carried out using linear programming method to determine the optimum size of the various components. The
reliability of power supply and availability of the local resources are the constraints. The minimization of levelized cost of electricity
is the objective function. The results of the study show that the levelized cost of electricity for this system in the present area of study
is 0.1081 USD/kWh. The sensitivity analysis is carried out to assess the suitability of the system in varying price environment. This
study is carried out for a village located in Sunderban deltaic region in the state of West Bengal, India.

Keywords Polygeneration . Optimization . Linear programming . LCOE . Reliability

Introduction more environment friendly and economically viable if local re-

Sustainable development is an important goal of the modern
world. To make the human development more sustainable,
generation and distribution of clean energy is imperative.
Presently, electricity from the large coal-based thermal power
plants through national grid is the major source of power in
India. However, coal-based thermal power plants emit most of
greenhouse gases causing climate change. To achieve sustain-
able development goals and also meeting the growing energy
demand, distributed generation (DG) from renewable re-
sources may be a sustainable option. (Singh and Parida 2012).
Polygeneration is a DG system where some other utilities like
chemicals, bio-fuels, chill and heating are produced along with
electricity to cater the needs of the local people. The multi-input
and multi-output nature of the polygeneration systems make it
* Sudipta De
de_sudipta@rediffmail.com
1 polygeneration is thus a multi criteria problem (Wang et al.
Department of Mechanical Engineering, Jadavpur University,
Kolkata 700032, India
2 ming methods as well as heuristic optimization algorithms like
Present address: Department of Electrical and Electronics
Engineering, Institute of Engineering and Management,
Kolkata 700091, India
sources and local demand for utility are properly matched. For
efficient integration of a polygeneration, optimization with suit-
able objective function is important. The use of optimization
algorithms is critical for proper sizing of the components (supply
side management) with proper resource utilization in an eco-
nomic way (Serra et al. 2009). Optimization is also useful for
the proper load dispatch accommodating the variation in the
electricity consumption pattern of a particular group of con-
sumers (Rong and Lahdelma 2016). Polygeneration is generally
beneficial from the economic and the environmental point of
view (Kabalina et al. 2017). El-Emam and Dincer (2018) have
shown that efficient process integration through polygeneration
has increased the exergy efficiency of the polygeneration plant. It
also reduces the primary energy consumption than the stand-
alone systems with the same utility outputs (Gopisetty et al.
2017). The polygeneration system has to be technically feasible,
environmentally benign and socially acceptable. So for a com-
bined best performance, optimization between these aspects is
necessary (Sigarchian et al. 2018). The optimization of a
2017). For optimum design of a polygeneration, linear program-
genetic algorithm, swarm and evolutionary algorithms are used
as reported in literature (Rong and Su 2017).
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Process Integr Optim Sustain

Solar Insolaon

Solar PV module

Wind Wind turbine

Electricity to Local
Syngas Micro grid (Ulity 1)
Straw Biomass Gas Engine
Gasifier

WHRS Cooling
Syngas Absorpon
(Ulity 2)
Chiller
Ethanol producing unit

Ethanol

Fig. 1 Schematic of the polygeneration system

In this paper, the design methodology of polygeneration
using linear programming for a typically off grid Indian vil-
lage located at a remote location is presented. Locally avail-
able resources are the inputs to this polygeneration system.
The optimization is carried out with defined availability of
the resources and for 100% reliable power supply as the con-
straints and the minimization of levelized cost of electricity
(LCOE) as the objective function. The obtained results may be
useful to the policy makers for finding out the possible areas
of the introduction of such systems in Indian context.
Materials and Methods
local microgrid. Ethanol is used locally as a transportation
fuel. The vapor absorption chiller is used to store food grains,
vegetables etc., for a short period, say, 3 days. A code is
developed in MATLAB 2013 and the optimization is carried
out using linear programming approach. In this area, solar
radiation is available as shown in Fig. 3. This area is very near
to the coast. So considerable amount of wind energy is avail-
able for harvesting as shown in Fig. 4. In this area, main
occupation of the people is agriculture. Paddy is cultivated
mostly in these areas. Straw is produced as a residue after
paddy cultivation. As straw is a dry biomass, so gasification
route is preferred for generating electricity from this agricul-
tural waste.

A renewable energy-based hybrid polygeneration system has System Description

been optimized with the locally available resources like solar,
straw (biomass) and wind. Electricity, ethanol and chill are the The polygeneration system consists of a solar module, bio-
output utilities of this polygeneration. Electricity is fed to the mass gasifier, a wind turbine and ethanol synthesis and

Fig. 2 Load curve for various

250
seasons
200
Rainy load
Load (kW)

150
Summer load
100 Winter Load
50
0
0 4 8 12 16 20 24
Time of the day (hours)
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Process Integr Optim Sustain

Fig. 3 Solar radiation pattern for 800

various seasons (India Solar
Resource Data 2018) 700

Solar radiaon (Wa/m 2)

600

500

400 Rainy radiaon

Summer Radiaon
300
Winter radiaon
200

100

0
0 4 8 12 16 20 24
Time of the day (hours)

separation units as shown in Fig. 1. The solar radiation is are given in Tables 1 and 2 (WBSEDCL 2017).The load curve
incident on the solar module and it generates electricity. is essential to design the polygeneration system as the avail-
Straw is collected locally and is fed to the biomass gasifier. ability of resources like solar radiation and wind vary over a
Syngas produced is fed to a gas engine to generate electricity. day as well as in different seasons. Optimum utilization of
The gas engine runs at full load. So change in efficiency of the these resources is essential for the economic operation of the
gas engine has no significant effect on LCOE. The instanta- polygeneration plant. The total load (TL) at any instance is
neous load as shown in Fig. 2 is met combinedly by the solar, given by Eq. (1) (Ray et al. 2017).
biomass and wind power. When the load is low or the power
TL ¼ DL þ AL þ SL ð1Þ
generated by the wind turbine or solar module is relatively
high then there is excess syngas which is not needed to gen- where DL is the domestic load, AL is the agricultural load and
erate electricity. The excess syngas is fed to the ethanol syn- SL is the street light load.
thesis unit to produce ethanol with the help of MoS2 catalyst
following the water gas shift reaction. The solar radiation pat-
tern is shown in Fig. 3. The variation of wind speed at 50 m Modeling of the Solar Photovoltaic System
elevation is given in Fig. 4.
The load curve is dependent on the number of households The instantaneous power output of the solar module Psolar is
of a particular village and the appliances used by the villagers. given by
In villages the load is mainly residential and agricultural load
PV ðmÞ  Rðt Þ
as industries are practically nonexistent in these areas. The Psolar ¼ ð2Þ
gadgets used by the villagers and their power consumption 106

Fig. 4 Variation of wind speed in 6

different seasons (NASA Surface
meteorology 2017)
5

4
Rainy wind speed
WInd speed (m/s)

Summer wind speed

3 Winter Wind speed

0
0 4 8 12 16 20 24
Time of the day (hours)
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Table 1 Gadgets used in rural

areas Gadgets used Power consumption Number per Operating hours (time of the day)
(Watt) household

Tubelight 55 2 18 to 22 h
Incandescent 60 1 18 to 22 h
bulb
Mobile charger 5 2 17 to 18 h
Fan 60 2 Whole day except in the winter season
Street light 55 20 in total village 18 to 03 h (next day), i.e. from evening to
(tubelight) entire night
Agricultural 400 5 in total village 12 to 15 h except in rainy season
pumpset

PV(m) is the power output of the solar module at 1000 W/m2 Economic Modeling
and R(t) is the radiation incident on the module at the tth
instant. Cost of the Solar Module

The cost of the solar module Cpv is given by

Modeling of the Wind Turbine
C pv ¼ C pvperkW  PV installed ð5Þ
The instantaneous power output of the wind turbine, Pwind,is
given by Eq. (3) (Saad et al. 2018) where CpvperkW is the cost of solar module per kilowatt and
PVinstalled is the installed capacity of PV module.
Pwind ¼ 0:5  A  σ  v ðt Þ3  C p ð3Þ
Cost of the Wind Turbine

where A is the swept area of the wind turbine, σ is the wind The cost of the wind turbine Cwind is given by
density, v(t) is the velocity of the wind and Cp is the Betz limit
(0.59). C wind ¼ C windperkW  W installed ð6Þ

where CwindperkW is the cost of the wind turbine per kilowatt

Modeling of the Biomass Gasifier and Winstalled is the installed capacity of wind turbine.

The load fed by the biomass power, Pbio(k) at kth instant is

Cost of Biomass Gasifier
given by
The cost of the biomass gasifier is given by the Eq. (7) (Jana
Pbio ðk Þ ¼ Lðk Þ−Psolar ðk Þ−Pwind ðk Þ ð4Þ and De 2015).
 
Capacityb s
where L(k), Psolar(k)and Pwind(k) are the total load, the load fed C eqb ¼ C eqa ð7Þ
by solar power and the load fed by wind power respectively. Capacitya

Table 2 Input data for economic

calculation Serial no. Parameter Value

1 Cost of straw 0.13 USD/kg

2 Cost of PV module 0.88 USD/W-peak
3 Cost of ethanol 0.66 USD/l (Jana and De 2015)
4 Operating hours per annum 8000 h
5 Plant life 20 years
6 Scale factor for biomass gasification 0.6 (Jana and De 2015)
7 Scale factor for ethanol synthesis 0.7 (Jana and De 2015)
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Process Integr Optim Sustain

a
Input (Load & Solar radiation for three seasons)

Initialize number of seasons, t

Initialize solar module size, s

Initialize hour, h

Compute amount of produced electricity and required amount of electricity to be produced by biomass in hour h
with solar module of size s

Pbiomass+Pwind> Pbioh

No Yes
s=s+1 h=h+1

Yes
h<24

No

Assign variable s as maximum size of solar

module required to allow biomass to produce
electricity greater than Pbioh

Yes
t<3 t=t+1

No

Assign minimum value of three solar

module and wind turbine sizes for three

Report minimum solar module size

Fig. 5 a Flow chart for determination of solar module and wind turbine when there is no shortage of supply of waste heat to WHRVAM. b Flow chart for
determination of optimum size of solar module, gasifier, wind turbine and ethanol producing units

where Ceqb is the cost of biomass gasifier of capacity b, Ceqa is where, TCesyn is the total cost of the ethanol synthesis unit
the cost of biomass gasifier of capacity a and s is the scale factor. Ethy is the total ethanol synthesized per year and Se is the
scale factor for the costing of the ethanol synthesis equip-
ment.
Cost of Ethanol Synthesis and Separation
 S s
The syngas from the gasifier is fed to the ethanol synthesis unit for E thy
TC esep ¼ 64:4  10  6
ð9Þ
ethanol production. Pure ethanol is obtained after separating it from 31176000
the water and unconverted syngas in the ethanol separation unit.
 S e
E thy TCesep is the total cost of the ethanol separation unit, Ethy is
TC esyn ¼ 7:4  10 6
ð8Þ the total ethanol synthesized per year and Ss is the scale
31176000
factor for ethanol separation unit.
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Process Integr Optim Sustain

b
Input load & PV size (Smin) and BG size =
maximum load

Initialize season t1 = 1

Initialize solar module size s1 = 1 and wind turbine WT1

Initialize hour h1 = 1

Compute amount of electricity that can be produced using solar module of size s 1 and WT1 hour h1

Compute amount of electricity that is required to be produced by biomass at hour h1 and syngas required for
that

Compute the ethanol produced hourly from the excess syngas

Compute the amount of waste heat supplied to WHRVAM

Compute the amount of

electricity supplied for the for h1<24 h1=h1+1
the whole day
No
Yes

Compute the amount of

electricity, ethanol and cooling
for the whole year

S1< least solar Yes

s1=s1+1
size

N
o
Yes
t 1< t1=t1+1
3
No

Compute all the utility value for the whole so that LCOE is
Finding out the optimum solar module
minimum
size, wind turbine size, ethanol yield
resulting least LCOE

Fig. 5 continued.

Reliability Analysis following the loss of power supply probability (LPSP)

and unmet load (UL) probability method (Sinha and
Here, the variation of the profit against the reliability of Chandel 2015). In the LPSP method, both the time of
the system is carried out for three different cases, say, (i) power failure and the magnitude of the power deficit are
designing the system to cater only the least load, i.e. when considered whereas in UL method only the total time of
the chance of power failure is highest (ii) designing the power failure is considered.
system to cater to the average load, i.e. the chance of
power failure is moderate and (iii) designing the system ∑i¼1
i¼n
E deficit
LPSP ¼  100 ð10Þ
to cater to the highest load, i.e. the chance of power fail- ∑i¼1 Pload
i¼n

ure tends to zero. The reliability analysis is done by

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Process Integr Optim Sustain

Table 3 Optimized size of

components Serial no. Parameter Value

1 Electrical output of biomass-gas engine 219 kWe

2 Capacity of solar PV module 6 kW
3 Capacity of wind turbine 3.23 kW
4 Size of the vapor absorption chiller 3 ton of refrigeration
5 Yearly ethanol production 2919.3 l

where Edeficit is the total electrical energy deficit over a utilities or very little transportation is required. So, the cost
year and Pload is the total electrical energy required per of transportation of straw is not considered while calculat-
year. ing LCOE.

∑i¼1
i¼n
Pfailure
UL ¼ ð11Þ
∑i¼1 Ptotal
i¼n Optimization Scheme

In this study, optimization is done by relational linear

Pfailure is the total time when there is electricity deficit and
Ptotal is the total hours of operation of the plant.
The Levelized Cost of Electricity Is Given by Eq. (12)
C Mos2 þ C Straw þ C PV module þ C BG þ TC ethsyn þ TC ethsep þ C vam
LCOE ¼
EL
ð12Þ
where C Mos2 is the cost of catalyst per annum, CStrawis the
annual cost of purchasing straw, C PVmodule is the annualized
cost of solar PV module, CBGis the annualized cost of bio-
mass gasifier, TCethsynis the annualized cost of ethanol syn-
thesis unit, TCethsepis the annualized cost of ethanol sepa-
ration unit, Cvam is the annualized cost of waste heat re-
covery vapor absorption cooling system and EL is the total
units of electricity generated per year. Straw is produced as
a by-product of paddy cultivation in this area. Straw that
remains in excess after feeding the local cattle is used for
this polygeneration. As straw is collected from the small
village spreading over a small area, it is mostly transported
manually by the local people for their own consumption of
programming (Kersting et al. 2017). The flow chart for
optimization scheme is shown in Fig. 5. Sizes of the solar
module, wind turbine are the inputs to the optimization
problem. The instantaneous availability of solar radiation
(Watt/m2) and wind speed (m/s) are the constraints to this
optimization problem. The size of the biomass gasifier
(kWe) corresponds to the maximum load. The more pow-
er from solar and the wind turbines lead to more ethanol
synthesis. The waste heat needed to run the waste heat
recovery vapour absorption system comes from the gas
engine. So, a minimum amount of biomass has to be
generated at all instances which is another constraint of
the optimization problem. The solar module size and the
wind turbine sizes are varied. This study is carried out for
a village of India inhabited by poor people. So, to make
the system sustainable in this area LCOE is chosen as the
objective function from the socio-economic point of
view. The LCOE as shown in Eq. (12) is the objective
function. The minimization of LCOE is the objective
function. The size of the solar module, wind turbine,
the biomass gasifier and the ethanol-producing units that
lead to the least LCOE is the optimized size of the
components.

Fig. 6 Variation of LCOE with 0.135

hybridization
0.13

0.125
USD/kWh

0.12

0.115

0.11

0.105
Solar+Baery Biomass Biomass+Solar Biomass+Solar+Wind
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Process Integr Optim Sustain

0.16 0.16
0.14
0.14
0.12

LCOE (USD/kWh)
0.12
0.1
0.08
0.1 0.06
LCOE (USD/kWh)

0.04
0.08
0.02

0.06
0
0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6
Cost of solar module (USD/kW)
0.04

Fig. 9 Variation of LCOE with cost of module

0.02

0
Only electricity Electricity and ethanol Electricity ethanol and chill
Fig. 7 Variation of LCOE with addition of utilities
Results and Discussion
The optimized size of the components is given in Table 3. The
optimized LCOE is 0.1081 USD/kWh.
The hybridization of more types of renewable energy re-
sources leads to decrement of LCOE It is shown in Fig. 6. It
occurs because renewable energy resources are intermittent in
nature. At the instant when one resource is absent, other may be
available in abundance at the same site, say, in the rainy season
solar resource availability is intermittent but the availability of
wind resource is high. Thus more hybridization of power sys-
tem in a single system leads to better resource utilization.
In this study, it has also been shown that addition of utilities in a
single efficiently integrated system lowers the LCOE as shown in
Fig. 7. The LCOE is found to be 0.1333 USD with only electricity
as the utility output and it has reduced to 0.1081 USD with addi-
tion of other utilities. This is also a socially acceptable solution as
ethanol is also important to the villagers as the local transportation
fuel and chilling is required for food or crop storage.
Sensitivity Analysis
The prices of the components change with time due to tech-
nical as well as the economic factors. So sensitivity analysis is
required to study the suitability of the system in the varying
environment.
Figure 8 shows variation of LCOE with the straw cost.
Straw is the feedstock to the biomass gasifier which is the
principal electricity generator. Moreover, the syngas gen-
erated by the biomass gasifier is used to produce ethanol. If
the cost of straw decreases below 0.066 USD/kg then the
LCOE rapidly decreases. This is due to the combined effect
of decrease in the cost of the feedstock for electricity gen-
eration and increase in the optimized amount of synthe-
sized ethanol.
Figure 9 shows the variation of LCOE with the unit price of
solar module. It is observed that there is a parallel shift in the
graph if the solar module price decreases below 0.66 USD/
Wp. This is because if the solar module price becomes less
than 0.66 USD/Wp then the optimized solar module size be-
comes 8 kW for minimum LCOE and the capacity of the wind
turbine becomes 1 kW as wind resources availability is lesser
than solar resource availability.

Fig. 8 Variation of LCOE with 0.3

cost of straw
0.25
LCOE (USD/kWh)

0.2

0.15

0.1

0.05

0
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
Cost of straw (USD/kg)
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Process Integr Optim Sustain

Fig. 10 Variation of LCOE with 0.16

reliability of power supply
0.14

0.12

LCOE (USD/kWh)
0.1

0.08

0.06

0.04

0.02

0
0 20 40 60 80 100 120
Reliability of power supply (%)

Figure 10 shows that LCOE decreases with the increase Conclusions

in the reliability of power supply. This is because renew-
able energy systems have much higher initial cost than the
running cost. In the hours of power failure, there is no
revenue but the initial investment is already done.
Moreover the cost of the major electricity generator, i.e.
the biomass gasifier does not decrease linearly with the
decrease in size. So there is a decrease in LCOE with the
increase in reliability of power supply which is a socially
acceptable solution.
Figure 11 shows variation of LCOE with the life of the
plant. It is observed that for the economic operation of the
plant, the minimum plant life is 20 years or above. This is
because the capital recovery factor (CRF) depends on the
plant life. The higher the plant life lower is the CRF. The
annualized cost is obtained by multiplying the CRF with
the total investment. If the CRF is higher then the annual-
ized investment increases leading to higher LCOE.
The supply of energy from locally available resources and
at an affordable cost is a need for sustainable energy solu-
tion, specifically for poor population. Hybridization of dif-
ferent intermittent renewable resources in a single system
helps to reduce requirement of energy storage as well as
meeting the variable load demand over the day or season.
Optimum hybridization based on a defined objective func-
tion and for a given load curve with availability of local
renewable resources is a challenging problem.
A distributed hybrid polygeneration system for a poor vil-
lage of Sundarban area of India is optimized for minimum
levelized cost of electricity (LCOE) using local renewable
resources only and delivering utility outputs matching with
the local demands. Linear programming is used as an optimi-
zation tool and supported by data available for a specific lo-
cation. The salient features of this study are

Fig. 11 Variation of LCOE with 0.18

life of the plant
0.16

0.14

0.12
LCOE (USD/kWh)

0.1

0.08

0.06

0.04

0.02

0
0 10 20 30 40 50 60
Life of the plant (years)
 Author's personal copy
& The minimum life of the plant is 20 years or more for
economic operation.
& Results of the study show that levelized cost of electricity
decreases with hybridization of more renewable resources
of the same system.
& The levelized cost of electricity decreases if the reliability
of power supply increases above 50%.
& The levelized cost of electricity abruptly increases if the
cost of straw is above 0.083 USD/kg.
Compliance with Ethical Standards
Conflict of Interest The authors declare that they have no conflict of
interest.
Abbreviations Ceqa, annualized cost of biomass gasifier of capacity a,
USD/year; Ceqb, annualized cost of biomass gasifier of capacity b, USD/
year; Cp, Betz limit; Cpv, annualized cost of solar module, USD/year;
CpvperkW, cost of solar module per kW, USD/kW; Cwind , annualized cost
of wind turbine, USD/year; CwindperkW, cost of wind turbine per kW,
USD/kw; Ethy , total ethanol synthesized per year, liters/year; PVinstalled,
installed capacity of PV module, kW; Pbio(k), power output of the bio-
mass gasifier, kW; Pwind, power output of the wind turbine, kW; Se, scale
factor for the costing of the ethanol synthesis equipment; Ss , scale factor
for costing ethanol separation unit.; TCesep , annualized total cost of the
ethanol separation unit, USD/year and.; TCesyn, annualized cost of the
ethanol synthesis unit, USD/year; Winstalled, installed capacity of wind
turbine, kW; A, swept area of the wind turbine, m2; AL, agricultural load,
kW; CRF, capital recovery factor; DG, distributed generation; DL, do-
mestic load, kW; LCOE, levelized cost of electricity, USD/kWh; LPSP,
loss of power supply probability; PV (m), power output of the solar
module at kW; R(t), solar insolation incident on the module, W/m2; s,
scale factor; SL, street light load, kW; TL, total load, kW; UL, unmet load
probability; v(t), velocity of the wind, m/s; L(k), total instantaneous load,
kW; σ, wind density, m3/kg
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