Development of an optimization model for energy systems planning in the Region of Waterloo

In this study, a large‐scale dynamic optimization model (University of Regina Energy Model, UREM) has been developed for supporting long‐term energy systems planning in the Region of Waterloo. The model can describe energy management systems as networks of a series of energy flows, transferring extracted/imported energy resources to end users through a variety of conversion and transmission technologies over a number of periods. It can successfully incorporate optimization models, scenario development and policy analysis within a general framework. Complexities in energy management systems can be systematically reflected; thus, the applicability of the modeling process can be highly enhanced. Four scenarios (including a reference case) are considered based on different energy management policies and sustainable development strategies for in‐depth analysis of interactions existing among energy, socio‐economy and environment in the Region. Useful solutions for the planning of energy management systems have been generated, reflecting trade‐offs among energy‐related, environmental and economic considerations. They are helpful for supporting (a) adjustment or justification of the existing allocation patterns of energy resources and services, (b) allocations of renewable energy resources, (c) formulation of local policies regarding energy consumption, economic development and energy structure, and (d) analysis of interactions among economic cost, system efficiency, emission mitigation and energy‐supply security. Results also indicate that UREM can help tackle dynamic and interactive characteristics of the energy management system in the Region of Waterloo and can address issues concerning cost‐effective allocation of energy resources and services. Thus, it can be used by decision makers as an effective technique in examining and visualizing impacts of energy and environmental policies, regional/community development strategies and emission reduction measures within an integrated and dynamic framework. Copyright © 2008 John Wiley & Sons, Ltd.