Real-Time Demand Bidding for Energy Management in Discrete Manufacturing Facilities

Abstract

During periods of power system stress, demand bidding (DB) programs encourage large electricity consumers to submit curtailment capacity bids and carry out load reduction, in return for financial rewards. In this paper, a real-time DB (RT-DB) program with applications in discrete manufacturing facilities is considered. A discrete manufacturing production model is constructed and an automated RT-DB algorithm is designed. An optimization problem, where the objective is to maximize the profits for manufacturers, is formulated. Solving this problem enables the RT-DB algorithm to automatically generate optimal load-reduction bids with adjusted production and energy plans. A case study is described, which shows that the proposed algorithm reduced the load demand during an RT-DB event, increasing the manufacturer's profits. Furthermore, the relationship between the incentive rate and the demand elasticity of the consumer, as well as the production volume and profits is described.