The mentioned optimization problem in section 3 is formulated as a MOP problem subjected to a set of constraints, in which decision variables are defined as the installed capacity of the components. Moreover, the allocation coefficients of the technologies to meet heating, cooling, electricity, and transportation load are also defined as decision variables. The allocation coefficient is defined as the portions of energy load that must be provided by the corresponding
component. These coefficients are defined to aid the model in selecting the best dispatch strategy if two or more components are chosen to provide energy load simultaneously. Three objective functions are considered: total NPC, RER, and CO2 emission. The constraints represent the energy balances between components and other technical constraints, which introduce the physical concept of the problem. The following section presents the mathematical formulation for the objective functions and constrains.