Abstract

This study proposes a whole life asset-supply chain optimization model for integration of biomass boilers into non-domestic (non-residential) buildings, under a renewable heat incentive scheme in the UK. The proposed model aims at identifying the optimal energy generation capacities and schedules for biomass and backup boilers, along with the optimal levels of biomass ordering and storage. The sensitivity of these decisions are then analyzed subject to changes in source, types and pricing of biomass materials as well as the choice of technologies and their cost and operational performance criteria. The proposed model is validated by applying it to a case study scenario in the UK. The results indicate that a Renewable Heat Incentive scheme could incentivize the adoption of biomass boilers, with a 3 to 1 ratio for biomass and backup boilers’ utilization. As such, the findings from this study will be useful for industry managers, tasked with the decision of which biomass boiler system to utilize, considering the support from RHI. On the other hand, it is shown that RHI does not provide an encouragement for efficiency when it comes to the choice of biomass technologies and fuels. This presents itself as a major implication for the success and sustainability of the UK government’s renewable heat incentive scheme.