Design optimization of a distributed energy system through cost and exergy assessments

Abstract In recent years, Distributed Energy Systems (DESs) have been recognized as a good option for sustainable development of future energy systems. With growing environmental concerns, design optimization of DESs through economic assessments only is not sufficient. To achieve long-run sustainability of energy supply, the key idea of this paper is to investigate exergy assessments in DES design optimization to attain rational use of energy resources while considering energy qualities of supply and demand. By using low-temperature sources for low-quality thermal demand, the waste of high-quality energy can be reduced, and the overall exergy efficiency can be increased. Based on a pre-established superstructure, the aim is to determine numbers and sizes of energy devices in the DES and the corresponding operation strategies. A multi-objective linear problem is formulated to reduce the total annual cost and increase the overall exergy efficiency. The Pareto frontier is found to provide different design options for planners based on economic and sustainability priorities, through minimizing a weighted-sum of the total annual cost and primary exergy input, by using branch-and-cut. Numerical results demonstrate that different optimized DES configurations can be found according to the two objectives. Moreover, results also show that the total annual cost and primary exergy input are reduced by 20% - 30% as compared with conventional energy supply systems.