Energy procurement of large industrial consumer via interval optimization approach considering peak demand management

Abstract

Large energy consumers demanding large quantity of energy resources to be supplied are one of essential types of energy demands that need a lot of attention to be paid. Large consumers usually procures some of their energy demand from pool market and the price through which pool market injects power to this consumer is set to be uncertain. Uncertainty modeling is done through interval optimization method in which a bi-objective optimization problem is generated to be minimized instead of single objective problem. Mentioned bi-objective model including deviation and average costs as disagreeing objective functions is solved utilizing popular ε-constraint method. Moreover, trade-off optimal solution between mentioned objective functions is determined by fuzzy decision making approach. In addition to mentioned techniques, time-of-use (TOU) model of demand response program (DRP) is enabled for large consumer to reduce its average and deviation costs through modifying its energy consumption trend. It should be noted that large consumer is not just limited to pool market and in addition mentioned market, it can procure energy from bilateral contracts and local units like distributed generation system, photovoltaic system (PV) and wind turbine (WT). A sample large consumer is simulated and results of simulations are presented for comparison.