Power generation portfolio optimisation by externality minimization

Electricity generation is responsible to a large extent for the climate change all over the world. To reach the sustainable power supply the RENewable ratio should be raised and the CO2 emission technologies should be rolled back. The indirect cost of the climate changes appearing later, the harmful effects and the irreversible environment change are expressed by the externality cost. Hungary undertook the raise of the REN ratio to 13% for year 2020. There are many scenarios showing the way how to reach the (very optimistic) targets. This paper shows a linear programming optimization technique how one can define the optimal portfolio having clear data and targets. The key of the problem is to find approved initial data and objectives accepted by the society that we want to reach. In practice there are dozens of real and lobby tasks, so it is really hard to judge what is the multi-compound-objective function what we optimize for.