Decomposing multi-regional dynamic energy process models

The energy process model with geometric distributed lag (GDL) demand, calle d the energy GDL process model, often distinguishes several regions. This p aper presents a new decomposition approach, based on the Dantzig-Wolfe prin ciple, to decompose such a model by region in order to provide a more manag eable tool for long-run energy planning and energy-related environmental pr otection decision making. The new decomposition approach is required becaus e most energy GDL process models cannot be converted into optimization prob lems, so that the existing linear or nonlinear decomposition principles can not be applied to such models directly. A two-region energy GDL process mod el of supplies and demands of oil, gas, electricity, and coal in Canada is presented and solved with the new decomposition approach, to aid in underst anding the performance of the new decomposition procedure. (C) 2000 Elsevie r Science Ltd. All rights reserved.