Vehicle-to-manufacturing (V2M) system: A novel approach to improve energy demand flexibility for demand response towards sustainable manufacturing

Abstract

The U.S. manufacturing sector accounts for 77% of the industrial energy consumption, but its participation in demand response (DR) programs is largely lagged behind. The limited flexibility in production scheduling under high capacity utilization and the lack of DR schemes that incorporate energy demand flexibility measures are deemed as major barriers. In this study, a framework of the interactive vehicles-to-manufacturing (V2M) energy sharing system is proposed to improve the energy demand flexibility of the aggregated system and enhance the DR effectiveness for manufacturers. The V2M-based DR scheme aims to reduce the energy cost by load shifting through joint production and energy sharing control, which can eventually promote manufacturing DR implementation even under high capacity utilization requirements and dynamic real-time electricity prices. The V2M system is modeled based on a discrete-Markov chain considering the complex interconnections among various manufacturing resources and multi-directional energy flows among manufacturing facilities, electric vehicles, and the power grid. Based on the system model, a mixed-integer nonlinear programming (MINLP) problem is formulated to identify the optimal DR scheme. The effectiveness of the proposed approach is validated through comparisons with traditional manufacturing DR schemes. The results show that a 2.1 to 6.5 times energy demand flexibility improvement and an additional 4.7% to 6.9% energy cost reduction can be achieved by the proposed approach.