Sensitivity Analysis for Levelized Cost of Electricity - LCOE with Multi-objective Optimization
Keywords:
LCOE, Multi-objective, Optimization, Sensitivity Analysis, Pareto Front, Levelized CostAbstract
In the context of the financial evaluation of generation projects, the Levelized Cost of Electricity - LCOE, is used as an instrument to compare generation technologies; however, one of its weaknesses is the sensitivity it has to the stock of the energy variables input for your calculation. In this sense, each author uses different criteria and methods for sensitivity analysis, among them: Monte Carlo method, Markowitz, CVaR, extended Lévy model, among others. In this work, a sensitivity analysis is proposed applying multi-objective optimization techniques, based on the calculation of the LCOE. The Pareto front is obtained for each of the variables that are defined as relevant in sensitivity.
The optimization problem model is applied to the proposed study cases for the validation and analysis of results. The results show that the Pareto front methodology is very useful for the sensitivity analysis of the LCOE, providing an additional tool.
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References
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