Integrated scheduling of rolling sector in steel production with consideration of energy consumption under time-of-use electricity prices

Abstract

Due to increasing load and penetration of renewables, the electric grid is using time-of-use pricing for industrial customers. Involving energy-intensive processes, steel companies can reduce their production cost by accounting for changes in electricity pricing. In particular, steel companies can take advantage of processing flexibility to make better use of electric power, and thus reduce the energy cost. In this paper, we address a new integrated scheduling problem of multi-stage production derived from the rolling sector of steel production, with consideration of campaign decisions and demand-side management. The problem is formulated as a continuous time mixed-integer nonlinear programming (MINLP) model with generalized disjunctive programming (GDP) constraints, which is then reformulated as a mixed-integer linear programming (MILP) model. Numerical results are presented to demonstrate that the model is computationally efficient and compact.