Energy systems and policy planning : a multi-level optimization approach

The objective of this study is to formulate an optimum multi-level energy plan that can resolve the underlying energy policy issues and options and can, thus, deal with the energy sector problems. The main hypothesis of this study is that since there exists a multi-(two) level policy making system in the energy sector (government and private sector decision making), the formulation of a multi-level energy plan should take into account the choices and decisions of these decision makers. To accomplish this, an optimum multi-level energy plan should be developed within a framework of a multi-level optimization approach (MO). To support the hypothesis, a theoretical energy planning model/approach is developed within the framework of (1) the theory of economic policy planning; (2) policy systems analysis; and (3) multi-level programming (MLP) (an operational multi-level optimization method). On the basis of this theoretical model, an Australian Energy Policy System Optimization Model (AEPSOM) has been developed. The Parametric Programming Search (PPS) algorithm has been developed in order to provide an alternative algorithm for solving MLP which was adopted to solve AEPSOM. The MLO model has been used to formulate an Australian multi-level energy plan. The results of this study suggest that a reformulation of existing Australian energy policies is needed. This study also draws a conclusion that an MLO approach can provide an operational methodology and a framework for optimum multi-level energy planning.