Optimal factory operation planning using electrical load shifting under time-based electric rates

Abstract

The summer season witnesses a tremendous rise in electrical power consumption. To meet this electric demand, the reduction of electrical power demand in summer by improving the efficient utilization of facilities is critical. Currently, power management and power-saving efforts in the manufacturing industry are focused on improving efficiency through replacement and improvement of equipment that consumes large amounts of energy. However, recent advances in demand response have significantly increased awareness that can lead factory managers to schedule their energy consumption efficiently by shifting electrical loads. This paper presents an optimization model for managing facility operations with shifting electrical loads in an effort to deal with the most expensive hours of the day. An integer programming (IP) model is used as a formal presentation of the problem. The results from a performance analysis of the formulation in solving problems with different characteristics are prepared, along with illustrative examples. They demonstrate how a factory manager can shift electrical loads in response to electricity prices.