Analysis of costs and emissions on the addition of production capacity of the power plant using multi echelon economic dispatch

Abstract

Electricity production using fossil fuel and coal may cause adverse effects to the environment. However, regardless the amount of emission produced, these practices are common due their ability to reduce cost, particularly in providing electricity as the basic needs for human being. One way that can be done to minimize the adverse effects is to optimize the power plant collaboration. This paper performs simulations to choose the best location for additional power plants. Simulation is done based on multi-echelon economic dispatch model. The advantage of this model is primarily its high flexibility to be applied in various conditions with two objectives: minimizing costs and emissions. The model is devised on the electricity system in East Kalimantan by using artificial data and computed using Excel Solver as the analytical tool. The result shows that zone A is the best location for additional production capacity in term of cost point of view. Whilst from the emissions perspective, zone C is the best location to increase production capacity.