An Integrated Decentralized Energy Planning Model considering Demand-Side Management and Environmental Measures

Decentralized energy planning (DEP) is looked upon as an indisputable opportunity for energy planning of villages, isolated islands, and far spots. Nonetheless, at this decentralized planning level, the value of demand-side resources is not fairly examined, despite enjoying great advantages. Therefore, the core task of this study is to integrate demand-side resources, as a competing solution against supply-side alternatives, with decentralized energy planning decisions and demonstrate the rewarding role it plays. Moreover, sustainability indicators (SIs) are incorporated into DEP attempts in order to attain sustainable development. It is emphasized that unless these indicators are considered at lower energy planning levels, they will be ignored at higher planning levels as well. Hence, to the best knowledge of the authors, this study for the first time takes into account greenhouse gas (GHG) emissions produced by utilization of renewable energies in DEP optimization models. To address the issues mentioned previously, multiobjective linear programming model along with a min-max goal programming approach is employed. Finally, using data taken from the literature, the model is solved, and the obtained results are discussed. The results show that DSM policies have remarkably contributed to significant improvements especially in terms of environmental indicators. 1. Introduction Decentralized energy planning aims for efficient use of local resources to supply energy. DEP is an available option for satisfying energy needs of villages, isolated islands, and small-scale end users in a reliable, affordable, and environmentally sustainable way (Hiremath et al. [1]). To see some recent top researches conducted in the related area, the works of [2–7] are recommended. The DEP paramount feature is to provide an area-based DEP so that with the least economic and environmental costs develops alternate energy sources and satisfies energy requirements. References [8–11] are good example works done in the literature with focus on DEP modeling. Energy demand management, also referred to as demand-side management (DSM), includes activities that modify end use energy demand; for example, the activities aim to reduce peak demand. It is worth mentioning that peak demand management does not necessarily lead to reduction in total energy consumption, but it defers the need for investments in establishing new power plants. The most generally accepted definition of DSM is the one presented by Gellings in 1984 [12]. As discussed by Kreith and Goswami [12], DSM alternatives must be