Optimizing Renewable Energy Sale Price with Linear Programming Techniques

In the pursuit of a sustainable energy future, optimizing the sale prices of renewable energy sources is crucial for maximizing their economic viability. This research paper presents a linear programming (LP) approach to determine the optimal sale prices for wind and solar energy. The study utilizes LP techniques to model and solve for the optimal pricing strategy that balances production capacity and market conditions. Our findings reveal that the optimal sale price for wind energy is $0.04 per kWh when production reaches 1000 kWh, while for solar energy, the optimal sale price is the same at a production level of 500 kWh. The LP model effectively accounts for variations in energy production and market demand, providing a strategic framework for setting competitive sale prices. This approach enhances profitability for renewable energy producers and supports more efficient integration of renewable sources into the energy market. The results underscore the potential of LP techniques in refining pricing strategies and contribute to the broader goal of advancing sustainable energy solutions. This research provides actionable insights for policymakers and energy producers seeking to optimize renewable energy pricing in dynamic market environments.