China Huadian: Harnessing the Sun, Wind, and Nature for Hybrid Energy Optimisation

Set in 2025, the case focuses on China Huadian Corporation (Huadian), a state-owned power supplier and a Fortune Global 500 company in China. Students step into the role of two newly recruited engineers working at Huadian’s power plant in Xinjiang, a northwestern province of China, touted as a renewable energy goldmine due to the abundant wind and sunlight it receives. Huadian optimises power generation by combining wind, solar, thermal, and energy storage to overcome the limitations of standalone energy sources.

The induction tasks for the engineers involve balancing power supply, cost of power generation, carbon emission limits, and intertemporal storage management. They are given three scenarios: (1) a sudden drop in solar power due to a sandstorm, (2) multiple energy sources with carbon emission caps, and (3) annual power scheduling for Jiquan, the world’s longest power transmission line across China. The key question assigned is: How can linear programming be used to optimise wind, solar, thermal, and storage resources while minimising the cost of power generation?

Students will assess the strategic locations for power generators, understand multi-energy complementarity and its pros and cons, as well as evaluate grid stability. They will also develop linear programming skills and learn sensitivity analysis using tools such as a graphical method and Excel Solver. This case is designed for undergraduates and postgraduates taking courses in operations management, operations research, intelligent optimisation, simulation, and AI/Machine learning.

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