Demand response optimization model to energy and power expenses analysis and contract revision

Abstract

This paper proposes a mathematical model based on mixed integer linear programming (MILP). This model aids the decision-making process in local generation use and demand response application to power demand contract adequacy by Brazilian consumers/prosumers. Electric energy billing in Brazil has some specificities which make it difficult to consider the choice of the tariff modality, the determination of the optimal contracted demand value, and demand response actions. In order to bridge this gap, the model considers local generation connected to the grid (distributed generation) and establishes an optimized solution indicating power energy contract aspects and the potential reduction in expenses for the next billing period (12 months). Different alternative sources already available or of interest to the consumer can be considered. The proposed mathematical model configures an optimization tool for the feasibility analysis of local generation use and, concomitantly, (i) checking the tariff modality, (ii) revising the demand contract, and (iii) suggesting demand response actions. The presented result shows a significant reduction in the energy and power expenses, which confirms the usefulness of this proposal. In the end, the optimized answers promote benefits for both, the consumer/prosumer and the electric utility.