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Dynamic Optimization of Electricity Tariffs in Senegal: A Pyomo-Based Model for a Resilient Renewable Energy Mix Toward 2050

Received: 27 November 2025     Accepted: 4 January 2026     Published: 20 January 2026
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Abstract

This study develops a Pyomo-based Mixed Integer Linear Programming (MILP) model to optimize electricity tariffs in Senegal, aiming to design a framework that is economically efficient, socially equitable, and environmentally sustainable. The model integrates generation, storage, and dynamic pricing mechanisms into a unified optimization structure covering the period 2022–2050. Five tariff scenarios are simulated - Reference, Progressive, Feed-in Tariff, Static Hybrid, and Dynamic Hybrid -allowing a comparative assessment of their technical and financial performance. Results demonstrate that the Dynamic Hybrid scenario achieves the most favorable outcomes. By 2050, renewable energy reaches 80% of the total generation mix, while the average cost of electricity decreases by 18% (from 83.8 to 68.9 FCFA/kWh). Public subsidies fall dramatically, from 27.5%to 6.8% of sector revenues. Dynamic hourly pricing reduces peak demand by 12–15%, limits reliance on thermal generation, and improves system flexibility through expanded energy storage (10% of the mix by 2050). Moreover, the social lifeline tariff (65 FCFA/kWh for the first 50 kWh/month) remains fiscally sustainable, ensuring protection for low-income households. Overall, the study highlights that dynamic tariff optimization, enabled by open-source algorithmic tools such as Pyomo, can serve as a strategic instrument for predictive regulation and sustainable energy governance. Policy recommendations are proposed for institutional strengthening, data-driven tariff setting, and regional integration within ECOWAS, positioning Senegal as a potential model for resilient energy transition in West Africa.

Published in International Journal of Energy and Power Engineering (Volume 15, Issue 1)
DOI 10.11648/j.ijepe.20261501.12
Page(s) 27-36
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2026. Published by Science Publishing Group

Keywords

Pyomo, Dynamic Pricing, Energy Optimization, Renewable Energy, Senegal

References
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[2] World Bank. Senegal Energy Sector Support Project -Implementation Report. Washington, DC: World Bank Group, 2023. Available at:
[3] International Energy Agency (IEA). Electricity Market Report 2023. Paris: International Energy Agency, 2023. Available at:
[4] Borenstein, S. (2005). The Long-Run Efficiency of Real-Time Electricity Pricing. The Energy Journal, 26(3), 93–116.
[5] J. Freier and V. von Loessl, (2022). “Dynamic electricity tariffs: Designing reasonable pricing schemes for private households,” Energy Economics, vol. 112, p. 106146.
[6] G. Dutta and K. Mitra, (2017). “A literature review on dynamic pricing of electricity,” Journal of the Operational Research Society, vol. 68, pp. 1131–1145.
[7] T. Iwatsuki, K. Takahashi, and T. Fujii, (2022). “Unsupervised disparity estimation from light field using plug-and-play weighted warping loss,” Signal Processing: Image Communication, vol. 107, p. 116764.
[8] P. I. Hancevic, H. M. Nunez, and J. Rosellon, (2022). “Electricity tariff rebalancing in emerging countries: The efficiency-equity tradeoff and its impact on PV distributed generation,” The Energy Journal, vol. 43, no. 4, pp. 69–93.
[9] IRENA. Renewable Power Generation Costs in 2024. Abu Dhabi: International Renewable Energy Agency, 2024. Available at:
[10] Borenstein, S. (2007). Customer Risk from Real-Time Retail Electricity Pricing: Bill Volatility and Hedgability. The Energy Journal, 28(2), 1–23.
[11] C. Hao, X. Zhang, Y. Li, C. Li, and X. Hu,(2024) “Dynamic pricing in consumer-centric electricity markets: A systematic review and thematic analysis,” Electric Power Systems Research, vol. 226, p. 110091.
[12] M. Ansarin, A. Azimi, and B. Mousavi, (2022) “A review of equity in electricity tariffs in the renewable era,” Renewable and Sustainable Energy Reviews, vol. 165,p. 112577.
[13] Hart, W. E., Watson, J.-P., & Woodruff, D. L. (2017). Pyomo: Optimization Modeling in Python. 2nd Edition, Springer.
[14] Khanh, N. et al. (2025). A Review of Open-Source Energy System Modelling Tools. International Journal of Advances in Applied Sciences, 14(2), 469–480.
[15] El Barkouki, B., Cherkaoui, M., & El Hammouchi, R.(2023). An Economic Dispatch for a Shared Energy Storage System Using MILP Optimization: A Case Study of a Moroccan Microgrid. Energies, 16(12), 4601.
[16] Horsch, J., & Calitz, J. (2017). Investment and Operation Co-Optimization of Integrating Wind and Solar in South Africa. arXiv preprint.
[17] Dalla Longa, F., & van der Zwaan, B. (2017). Do Kenya’s Climate Change Mitigation Ambitions Necessitate Large-Scale Renewable Energy Deployment? Renewable Energy, 113, 1559–1568.
[18] D. Mburamatare, W. K. Gboney, and J. D. Hakizimana,(2022) “Electricity tariff design: Theoretical concepts vs. practices - review of tariff design approaches in East Africa (including Kenya),” International Journal of Energy Economics and Policy, vol. 12, no. 5, pp. 260–273,
[19] Ministry of Petroleum and Energy (MPE). (2014). Emergency Plan for Senegal - National Strategy for the Integration of Renewable Energy. Government of Senegal, Dakar. Available at:
[20] Diassy, D., Samb, M. L., Ngom, A., et al. (2025). Comparative Modeling of Electricity Tariff Schemes in Senegal and Implications for the Energy Transition by 2050. International Journal of Advanced Research, 13(10), 904–918.
[21] World Bank. (2023). Senegal Energy Sector Support Project: Implementation Completion and Results Report. Washington, DC: World Bank. Available at:
[22] Eberhard, A., & Gratwick, K. (2010). Independent Power Projects in Sub-Saharan Africa: Lessons from Five Key Countries. Energy Policy, 38(5), 3031–3045.
[23] International Energy Agency (IEA). (2023). Energy Policies for Emerging Economies: Industrial Competitiveness and Pricing Frameworks. Paris: IEA. Available at:
Cite This Article
  • APA Style

    Diassy, D., Sow, F., Sam, M., Faye, J. J., Samb, M. L. (2026). Dynamic Optimization of Electricity Tariffs in Senegal: A Pyomo-Based Model for a Resilient Renewable Energy Mix Toward 2050. International Journal of Energy and Power Engineering, 15(1), 27-36. https://doi.org/10.11648/j.ijepe.20261501.12

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    ACS Style

    Diassy, D.; Sow, F.; Sam, M.; Faye, J. J.; Samb, M. L. Dynamic Optimization of Electricity Tariffs in Senegal: A Pyomo-Based Model for a Resilient Renewable Energy Mix Toward 2050. Int. J. Energy Power Eng. 2026, 15(1), 27-36. doi: 10.11648/j.ijepe.20261501.12

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    AMA Style

    Diassy D, Sow F, Sam M, Faye JJ, Samb ML. Dynamic Optimization of Electricity Tariffs in Senegal: A Pyomo-Based Model for a Resilient Renewable Energy Mix Toward 2050. Int J Energy Power Eng. 2026;15(1):27-36. doi: 10.11648/j.ijepe.20261501.12

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  • @article{10.11648/j.ijepe.20261501.12,
      author = {Dimitry Diassy and Fatma Sow and Mouhamadou Sam and Jacques Joachim Faye and Mamadou Lamine Samb},
      title = {Dynamic Optimization of Electricity Tariffs in Senegal: A Pyomo-Based Model for a Resilient Renewable Energy Mix Toward 2050
    },
      journal = {International Journal of Energy and Power Engineering},
      volume = {15},
      number = {1},
      pages = {27-36},
      doi = {10.11648/j.ijepe.20261501.12},
      url = {https://doi.org/10.11648/j.ijepe.20261501.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijepe.20261501.12},
      abstract = {This study develops a Pyomo-based Mixed Integer Linear Programming (MILP) model to optimize electricity tariffs in Senegal, aiming to design a framework that is economically efficient, socially equitable, and environmentally sustainable. The model integrates generation, storage, and dynamic pricing mechanisms into a unified optimization structure covering the period 2022–2050. Five tariff scenarios are simulated - Reference, Progressive, Feed-in Tariff, Static Hybrid, and Dynamic Hybrid -allowing a comparative assessment of their technical and financial performance. Results demonstrate that the Dynamic Hybrid scenario achieves the most favorable outcomes. By 2050, renewable energy reaches 80% of the total generation mix, while the average cost of electricity decreases by 18% (from 83.8 to 68.9 FCFA/kWh). Public subsidies fall dramatically, from 27.5%to 6.8% of sector revenues. Dynamic hourly pricing reduces peak demand by 12–15%, limits reliance on thermal generation, and improves system flexibility through expanded energy storage (10% of the mix by 2050). Moreover, the social lifeline tariff (65 FCFA/kWh for the first 50 kWh/month) remains fiscally sustainable, ensuring protection for low-income households. Overall, the study highlights that dynamic tariff optimization, enabled by open-source algorithmic tools such as Pyomo, can serve as a strategic instrument for predictive regulation and sustainable energy governance. Policy recommendations are proposed for institutional strengthening, data-driven tariff setting, and regional integration within ECOWAS, positioning Senegal as a potential model for resilient energy transition in West Africa.
    },
     year = {2026}
    }
    

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  • TY  - JOUR
    T1  - Dynamic Optimization of Electricity Tariffs in Senegal: A Pyomo-Based Model for a Resilient Renewable Energy Mix Toward 2050
    
    AU  - Dimitry Diassy
    AU  - Fatma Sow
    AU  - Mouhamadou Sam
    AU  - Jacques Joachim Faye
    AU  - Mamadou Lamine Samb
    Y1  - 2026/01/20
    PY  - 2026
    N1  - https://doi.org/10.11648/j.ijepe.20261501.12
    DO  - 10.11648/j.ijepe.20261501.12
    T2  - International Journal of Energy and Power Engineering
    JF  - International Journal of Energy and Power Engineering
    JO  - International Journal of Energy and Power Engineering
    SP  - 27
    EP  - 36
    PB  - Science Publishing Group
    SN  - 2326-960X
    UR  - https://doi.org/10.11648/j.ijepe.20261501.12
    AB  - This study develops a Pyomo-based Mixed Integer Linear Programming (MILP) model to optimize electricity tariffs in Senegal, aiming to design a framework that is economically efficient, socially equitable, and environmentally sustainable. The model integrates generation, storage, and dynamic pricing mechanisms into a unified optimization structure covering the period 2022–2050. Five tariff scenarios are simulated - Reference, Progressive, Feed-in Tariff, Static Hybrid, and Dynamic Hybrid -allowing a comparative assessment of their technical and financial performance. Results demonstrate that the Dynamic Hybrid scenario achieves the most favorable outcomes. By 2050, renewable energy reaches 80% of the total generation mix, while the average cost of electricity decreases by 18% (from 83.8 to 68.9 FCFA/kWh). Public subsidies fall dramatically, from 27.5%to 6.8% of sector revenues. Dynamic hourly pricing reduces peak demand by 12–15%, limits reliance on thermal generation, and improves system flexibility through expanded energy storage (10% of the mix by 2050). Moreover, the social lifeline tariff (65 FCFA/kWh for the first 50 kWh/month) remains fiscally sustainable, ensuring protection for low-income households. Overall, the study highlights that dynamic tariff optimization, enabled by open-source algorithmic tools such as Pyomo, can serve as a strategic instrument for predictive regulation and sustainable energy governance. Policy recommendations are proposed for institutional strengthening, data-driven tariff setting, and regional integration within ECOWAS, positioning Senegal as a potential model for resilient energy transition in West Africa.
    
    VL  - 15
    IS  - 1
    ER  - 

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Author Information
  • Department of Physics and Chemistry, University Iba Der Thiam of Thies, Thies, Senegal

  • Department of Physics and Chemistry, University Iba Der Thiam of Thies, Thies, Senegal

  • Department of Physics and Chemistry, University Iba Der Thiam of Thies, Thies, Senegal

  • Department of Physics and Chemistry, University Iba Der Thiam of Thies, Thies, Senegal

  • Department of Physics and Chemistry, University Iba Der Thiam of Thies, Thies, Senegal

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