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1. Introduction - Firenze University Press

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<strong>1.</strong> Define the studied system (in this case the kraft pulp mill).<br />

2. Define possible system changes to be evaluated (in this case the investments in<br />

energy efficiency measures together with the different options for debottlenecking<br />

the recovery boiler).<br />

3. Define the surrounding system used for evaluation of the studied system (in this case<br />

the different energy market scenarios describing energy market prices, policy<br />

instruments and associated CO2 emissions for marginal use of energy carriers).<br />

4. Construct a model for simulation of energy flows in the overall system defined in<br />

steps 1-3 (in this case the simulation model is constructed using the energy systems<br />

modelling tool reMIND).<br />

5. Define the performance indicator(s) to be used for evaluating the system changes<br />

considered (in this case the net annual profit and global CO2 emissions).<br />

6. Use the simulation model to optimize the system based on the selected performance<br />

indicator for given settings in the surrounding system (defined by the aim of the<br />

study in question).<br />

7. Vary key settings in the surrounding system to see how/whether the optimal solution<br />

is affected by these changes (in this study we calculate the optimal solution for a<br />

number of possible energy market conditions defined by energy market scenarios).<br />

8. Fix certain parameters in order to investigate how close other solutions of interest are<br />

to the optimal solution (in this case solutions for all of the studied energy related<br />

technologies are obtained together with a sensitivity analysis showing the effect of<br />

changes in different system parameters)<br />

9. Analyze the results in relation to the aim of the study (as defined by steps 1-3).<br />

For constructing the model of the studied system and the surrounding system (described in<br />

step 3 above) the energy systems modelling tool reMIND, based on mixed-integer linear<br />

programming, is used. The reMIND tool has previously been used and described by e.g.<br />

Karlsson [19]. With this tool a simulation model of an energy system can be specified using a<br />

graphical interfaceand pre-defined equations. The constructed model can then be used for<br />

optimization purposes. In this study the objective is to minimize the total annual system cost<br />

of the studied energy system (the mill), assuming given conditions in the surrounding system<br />

(the energy market, including policy instruments) and the objective function can be defined as<br />

follows:<br />

min Z = rI tot - B tot + C tot (1)<br />

wherer = Capital recovery factor (0.2)<br />

I tot = Total investment cost (energy efficiency measures and technologiesfor utilizing the steam surplus and<br />

debottlenecking the recovery boiler)<br />

B tot = Revenue of sold energy products including policy instruments (electricity, district heating, bark,<br />

captured CO 2, biofuels etc.)<br />

C tot = Running costs (electricity, chemicals etc.)<br />

For the system studied in this paper the different parameters, that is the investment costs,<br />

running costs and revenues for the different technologies, are described in Section 4.<br />

Asdescribed above, reMIND is constructed for minimization of the annual system cost. The<br />

different investment options studied in this paper are profitable when the annual system cost,<br />

Z, is negative. Hereafter the annual system cost is therefore referred to as the system’s annual<br />

net profit.<br />

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