Practice summaries: An optimization mathematical model for Concentrated solar power financing decisions at Lockheed Martin

Alan Taber; Andrei Nikiforov; Alok Baveja

doi:10.1287/inte.1120.0662

Practice summaries: An optimization mathematical model for Concentrated solar power financing decisions at Lockheed Martin

Alan Taber, Andrei Nikiforov, Alok Baveja

Rutgers Business School, Supply Chain Management

Research output: Contribution to journal › Article › peer-review

Abstract

Concentrated solar power plants are an alternative to natural gas turbine plants in the portfolios of utilities and independent power producers (IPPs). To obtain financing for a new plant, an IPP must rigorously establish plant production guarantees. We developed an optimization model that maximizes annual profits by generating an optimal hour-by-hour production schedule. We use a fast greedy heuristic to solve this mathematical model. This work has enabled Lockheed Martin and its developer partners to be successful in project negotiations with major utility companies, resulting in 725 megawatts of power plants in development and over $5 billion in predicted sales.

Original language	English (US)
Pages (from-to)	591-594
Number of pages	4
Journal	Interfaces
Volume	42
Issue number	6
DOIs	https://doi.org/10.1287/inte.1120.0662
State	Published - Nov 2012

All Science Journal Classification (ASJC) codes

Strategy and Management
Management Science and Operations Research
Management of Technology and Innovation

Keywords

Concentrated solar power
Decision support systems: information systems
Energy: renewable sources
Forecasting
Suboptimal algorithms

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10.1287/inte.1120.0662

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abstract = "Concentrated solar power plants are an alternative to natural gas turbine plants in the portfolios of utilities and independent power producers (IPPs). To obtain financing for a new plant, an IPP must rigorously establish plant production guarantees. We developed an optimization model that maximizes annual profits by generating an optimal hour-by-hour production schedule. We use a fast greedy heuristic to solve this mathematical model. This work has enabled Lockheed Martin and its developer partners to be successful in project negotiations with major utility companies, resulting in 725 megawatts of power plants in development and over $5 billion in predicted sales.",

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KW - Forecasting

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Practice summaries: An optimization mathematical model for Concentrated solar power financing decisions at Lockheed Martin

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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