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DOE OSTI2020

Optimization-Driven Scenario Grouping

Scenario decomposition algorithms for stochastic programs compute bounds by dualizing all nonanticipativity constraints and solving individual scenario problems independently. Here, we develop an approach that improves on these bounds by reinforcing a carefully chosen subset of nonanticipativity constraints, effectively placing scenarios into groups. Specifically, we formulate an optimization problem for grouping scenarios that aims to improve the bound by optimizing a proxy metric based on information obtained from evaluating a subset of candidate feasible solutions. We show that the proposed grouping problem is NP-hard in general, identify a polynomially solvable case, and present two formulations for solving the problem: a matching formulation for a special case and a mixed-integer programming formulation for the general case. We use the proposed grouping scheme as a preprocessing step for a particular scenario decomposition algorithm and demonstrate its effectiveness in solving standard test instances of two-stage 0–1 stochastic programs. Using this approach, we are able to prove optimality for all previously unsolved instances of a standard test set. Additionally, we implement this scheme as a preprocessing step for PySP, a publicly available and widely used implementation of progressive hedging, and compare this grouping approach with standard grouping approaches on large-scale stochastic unit commitment instances. Finally, the idea is extended to propose a finitely convergent algorithm for two-stage stochastic programs with a finite feasible region.

97 MATHEMATICS AND COMPUTING↗

DOE OSTI2022

North Carolina Water Utility Builds Resilience with Distributed Energy Resources

As the frequency and duration of grid outages increase, backup power systems are becoming more important for ensuring that critical infrastructure continues to provide essential services. Most facilities rely on diesel generators, which may be ineffective during long outages owing to limited fuel supplies and high generator failure rates. Distributed energy resources such as solar, storage, and combined-heat-and-power systems, coupled with on-site biofuel production, offer an alternative source of on-site generation that can provide both cost savings and resilience (i.e., the ability to respond to catastrophic events with longer-term consequences). A mixed-integer linear program minimizes costs and maximizes resilience at a wastewater treatment plant in Wilmington, North Carolina. We find that the plant can reduce life-cycle energy costs by 3.1% through the installation of a hybrid combined-heat-and-power, photovoltaic, and storage system. When paired with existing diesel generators, this system can sustain full load for seven days while saving $664,000 over 25 years and reducing diesel fuel use by 48% compared with the diesel-only solution. This analysis informed a decision by the Cape Fear Public Utility Authority to allocate funds for the implementation of a combined-heat-and-power system at the wastewater treatment plant in fiscal year 2023. Finally, the benefits of deploying hybrid combined-heat-and-power technologies and the utilization of on-site biofuel production extend, on a national scale, to thousands of wastewater treatment facilities and other types of critical infrastructure.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2024

Evaluating Nationwide Supply Chain for Circularity of PET and Olefin Plastics

PET (Polyethylene Terephthalate, #1) and olefin plastics including HDPE (High Density Polyethylene, #2), LDPE/LLDPE (Low Density/Linear Low-Density Polyethylene, #4) and PP (Polypropylene, #5) together comprise nearly 80% of the U.S. plastic market. Due to their high market share and extensive application in packaging these polymers have better potential for circularity than other polymer types. To understand the potential of future scenarios with higher recycling rates, supply chain scenarios for PET and olefin plastic packaging need to be analyzed with increased availability and collection of plastics. Currently there exists a knowledge gap to understand the circular supply chain on a national level. Performing a nationwide analysis introduces certain challenges such as variability in the plastic mix of the recycling stream in different municipalities, lack of collection of some types of plastics, regional differences in cost and estimating a national supply curve based on state level access rate and participation rate. Currently, a limited number of Plastic Reclaimers recycle the nation’s collected plastic involving transportation over long distances surpassing state boundaries. Modeling a nationwide scenario instead of regional/state based scenario will facilitate transportation beyond state boundaries for the development of a circular economy. A Mixed-integer Linear Programming model was developed, to identify the optimal location and capacity of the Material Recovery Facilities (MRFs) nationwide subject to maximizing the profit margin of the industrial entities within the model. We considered three different scenarios including the base case scenario (S1) collecting 2.27 million metric tons/year as well as two additional scenarios with available plastic supply of 1.8 times (S2) and 2.2 times (S3) of the base case scenario. The model identified 166, 275 and 319 counties as potential MRF locations for scenarios S1, S2 and S3 respectively. Compared to the existing number of counties having MRFs in the US, the model results indicated a reduction of 38% of MRFs for S1. For S2 and S3, the number of counties with MRFs increased 3% and 20% respectively compared to counties currently with MRFs. The average profit remains constant between $180-$181/ton regardless of the increased plastic collection.

54 - ENVIRONMENTAL SCIENCES/GLOBAL CLIMATE CHANGE ↗