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Infinite DimEnsionAl State-space as a Pricing Tool for Subsidized Energy Systems


In this work, the Infinite-DimEnsional State-space (IDEAS) conceptual framework is utilized as a systematic tool for determining the dynamic subsidies and flow rates for an overall system consisting of various subsystems interacting with each other via monetary and physical flows. The study’s goal is to identify significant improvements over traditional practices involving fixed monetary subsidies and constant material flows. The IDEAS framework is abl to identify intensified overall system designs, and to quantify the process intensification potential (PIP) of the technologies employed in the overall system. The resulting mathematical formulation is a mixed integer linear program (MILP). A case study is utilized to illustrate the proposed methodology, focusing on an overall system consisting of refineries, petrochemical plants, and power plants that are provided with liquid and gas hydrocarbon feedstock. It is demonstrated that the overall system’s PIP is 11%.

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