A Lagrangian Decomposition Approach to Solve Large Scale Multi-Sector Energy System Optimization Problems

We consider the capacity and operations planning of a European energy supply system with a high share of renewable energy. Our model includes the energy sectors electricity, heat, and transportation and it considers numerous types of consumers and power generation, storage, and transformation technologies, which participate in these energy sectors. Given time series for the regional demands in each sector and the potential renewable production, the goal is to simultaneously optimize the strategic dimensioning and the hourly operation of all components in the system such that the overall costs are minimized.