Abstract
Due to the increased development of the smart grid, it is becoming crucial to have an efficient energy management system for a time-of-use (TOU) rate industrial user in Taiwan. In this paper, an extension of the direct search method (DSM) is developed to deal with the operating schedule of a TOU rate industrial user under the demand bidding mechanism of Taipower. To maximize the total incentive obtained from the Taiwan Power Company (TPC, namely Taipower), several operational strategies using a battery energy storage system (BESS) are evaluated in the study to perform peak shaving and realize energy conservation. The effectiveness of the proposed DSM algorithm is validated with the TOU rate industrial user of the TPC. Numerical experiments are carried out to provide a favorable indication of whether to invest in a BESS for the renewable energy-based TOU rate industrial user in order to execute the demand bidding program (DBP).
Highlights
Due to the soaring prices of fossil fuels and the rising awareness of environmental protection, renewable energy resources have attracted more and more attention from the utility industry
Several operational strategies of a battery energy storage system (BESS) are evaluated for a TOU rate industrial user to maximize the total incentive obtained from the Taiwan Power Company (TPC)
To maximize the total incentive obtained from the TPC on a load-reduction day, the best operating strategy for the BESS is to fully discharge at maximum power output during the demand response (DR)-executing time
Summary
Due to the soaring prices of fossil fuels and the rising awareness of environmental protection, renewable energy resources have attracted more and more attention from the utility industry. Sustainability 2021, 13, 3576 studies have focused on load clipping with time-of-use rates [9], real-time pricing [10,11], and demand bidding [12] These topics were proposed either to increase society’s benefit from the use of electrical power or reduce the cost of electricity for TOU rate users. The aim of this study is to evaluate the operating strategy of a BESS in a hybrid generation system for a TOU rate industrial user under the demand bidding mechanism of Taipower. An improved DSM incorporated with a three-state DP is proposed to solve the operating schedule of a TOU rate industrial user under the demand bidding mechanism of Taipower.
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