An Optimal Electricity Allocation Model for the Effective Utilisation of Energy Sources in India with Focus on Carbon Tax

Energy is a vital input for social and economic development of any country. Development of an electricity allocation model will help in the proper allocation of the energy sources in meeting the future electricity demand in India. In this paper, an attempt has been made to develop a fuzzy based linear programming Optimal Electricity Allocation Model (OEAM) that minimizes the cost and determines the optimum allocation of different energy sources for the power generation in India with special emphasis to carbon tax. The model allocates the energy distribution pattern for the year 2020 in India, which would be helpful for policy makers in commercializing the renewable energy systems to the greatest extent. From the model it is observed that 68% of power generation is by means of commercial energy sources and 32% is from renewable energy sources in the year 2020. This study will help in the formation of strategies for effective utilization of energy sources in India.