IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v63y2013icp233-244.html
   My bibliography  Save this article

Time-of-use based electricity demand response for sustainable manufacturing systems

Author

Listed:
  • Wang, Yong
  • Li, Lin

Abstract

As required by the Energy Policy Act of 2005, utility companies across the U.S. are offering TOU (time-of-use) based electricity demand response programs. The TOU rate gives consumers opportunities to manage their electricity bill by shifting use from on-peak periods to mid-peak and off-peak periods. Reducing the amount of electricity needed during the peak load times makes it possible for the power grid to meet consumers' needs without building more costly backup infrastructures and help reduce GHG (greenhouse gas) emissions. Previous research on the applications of TOU and other electricity demand response programs has been mainly focused on residential and commercial buildings while largely neglected industrial manufacturing systems. This paper proposes a systems approach for TOU based electricity demand response for sustainable manufacturing systems under the production target constraint. Key features of this approach include: (i) the electricity related costs including both consumption and demand are integrated into production system modeling; (ii) energy-efficient and demand-responsive production scheduling problems are formulated and the solution technique is provided; and (iii) the effects of various factors on the near-optimal scheduling solutions are examined. The research outcome is expected to enhance the energy efficiency, electricity demand responsiveness, and cost effectiveness of modern manufacturing systems.

Suggested Citation

  • Wang, Yong & Li, Lin, 2013. "Time-of-use based electricity demand response for sustainable manufacturing systems," Energy, Elsevier, vol. 63(C), pages 233-244.
    • Handle: RePEc:eee:energy:v:63:y:2013:i:c:p:233-244
    DOI: 10.1016/j.energy.2013.10.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S036054421300844X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2013.10.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Finn, P. & Fitzpatrick, C. & Connolly, D. & Leahy, M. & Relihan, L., 2011. "Facilitation of renewable electricity using price based appliance control in Ireland’s electricity market," Energy, Elsevier, vol. 36(5), pages 2952-2960.
    2. Rastegar, Mohammad & Fotuhi-Firuzabad, Mahmud & Aminifar, Farrokh, 2012. "Load commitment in a smart home," Applied Energy, Elsevier, vol. 96(C), pages 45-54.
    3. Fróes Lima, Carlos Alberto & Portillo Navas, José Ricardo, 2012. "Smart metering and systems to support a conscious use of water and electricity," Energy, Elsevier, vol. 45(1), pages 528-540.
    4. van Ruijven, Bas & de Vries, Bert & van Vuuren, Detlef P. & van der Sluijs, Jeroen P., 2010. "A global model for residential energy use: Uncertainty in calibration to regional data," Energy, Elsevier, vol. 35(1), pages 269-282.
    5. Walawalkar, Rahul & Fernands, Stephen & Thakur, Netra & Chevva, Konda Reddy, 2010. "Evolution and current status of demand response (DR) in electricity markets: Insights from PJM and NYISO," Energy, Elsevier, vol. 35(4), pages 1553-1560.
    6. Venkatesan, Naveen & Solanki, Jignesh & Solanki, Sarika Khushalani, 2012. "Residential Demand Response model and impact on voltage profile and losses of an electric distribution network," Applied Energy, Elsevier, vol. 96(C), pages 84-91.
    7. Pina, André & Silva, Carlos & Ferrão, Paulo, 2012. "The impact of demand side management strategies in the penetration of renewable electricity," Energy, Elsevier, vol. 41(1), pages 128-137.
    8. Yong Liang & David I. Levine & Zuo-Jun (Max) Shen, 2012. "Thermostats for the Smart Grid: Models, Benchmarks, and Insights," The Energy Journal, , vol. 33(4), pages 60-96, October.
    9. Soares, J. & Silva, M. & Sousa, T. & Vale, Z. & Morais, H., 2012. "Distributed energy resource short-term scheduling using Signaled Particle Swarm Optimization," Energy, Elsevier, vol. 42(1), pages 466-476.
    10. Quiggin, Daniel & Cornell, Sarah & Tierney, Michael & Buswell, Richard, 2012. "A simulation and optimisation study: Towards a decentralised microgrid, using real world fluctuation data," Energy, Elsevier, vol. 41(1), pages 549-559.
    11. Nikzad, Mehdi & Mozafari, Babak & Bashirvand, Mahdi & Solaymani, Soodabeh & Ranjbar, Ali Mohamad, 2012. "Designing time-of-use program based on stochastic security constrained unit commitment considering reliability index," Energy, Elsevier, vol. 41(1), pages 541-548.
    12. Finn, P. & Fitzpatrick, C. & Connolly, D., 2012. "Demand side management of electric car charging: Benefits for consumer and grid," Energy, Elsevier, vol. 42(1), pages 358-363.
    13. Ashok, S., 2006. "Peak-load management in steel plants," Applied Energy, Elsevier, vol. 83(5), pages 413-424, May.
    14. Torriti, Jacopo, 2012. "Price-based demand side management: Assessing the impacts of time-of-use tariffs on residential electricity demand and peak shifting in Northern Italy," Energy, Elsevier, vol. 44(1), pages 576-583.
    15. Herter, Karen & Wayland, Seth, 2010. "Residential response to critical-peak pricing of electricity: California evidence," Energy, Elsevier, vol. 35(4), pages 1561-1567.
    16. Xiuli Chao & Frank Y. Chen, 2005. "An Optimal Production and Shutdown Strategy when a Supplier Offers an Incentive Program," Manufacturing & Service Operations Management, INFORMS, vol. 7(2), pages 130-143, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boßmann, Tobias & Eser, Eike Johannes, 2016. "Model-based assessment of demand-response measures—A comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1637-1656.
    2. Wang, Yong & Li, Lin, 2015. "Time-of-use electricity pricing for industrial customers: A survey of U.S. utilities," Applied Energy, Elsevier, vol. 149(C), pages 89-103.
    3. Wang, Yong & Li, Lin, 2014. "Time-of-use based electricity cost of manufacturing systems: Modeling and monotonicity analysis," International Journal of Production Economics, Elsevier, vol. 156(C), pages 246-259.
    4. Woo, C.K. & Li, R. & Shiu, A. & Horowitz, I., 2013. "Residential winter kWh responsiveness under optional time-varying pricing in British Columbia," Applied Energy, Elsevier, vol. 108(C), pages 288-297.
    5. Li, Lanlan & Gong, Chengzhu & Wang, Deyun & Zhu, Kejun, 2013. "Multi-agent simulation of the time-of-use pricing policy in an urban natural gas pipeline network: A case study of Zhengzhou," Energy, Elsevier, vol. 52(C), pages 37-43.
    6. Upton, J. & Murphy, M. & Shalloo, L. & Groot Koerkamp, P.W.G. & De Boer, I.J.M., 2015. "Assessing the impact of changes in the electricity price structure on dairy farm energy costs," Applied Energy, Elsevier, vol. 137(C), pages 1-8.
    7. Batista, N.C. & Melício, R. & Matias, J.C.O. & Catalão, J.P.S., 2013. "Photovoltaic and wind energy systems monitoring and building/home energy management using ZigBee devices within a smart grid," Energy, Elsevier, vol. 49(C), pages 306-315.
    8. Gomes, A. & Antunes, C. Henggeler & Martinho, J., 2013. "A physically-based model for simulating inverter type air conditioners/heat pumps," Energy, Elsevier, vol. 50(C), pages 110-119.
    9. Lund, Peter D. & Lindgren, Juuso & Mikkola, Jani & Salpakari, Jyri, 2015. "Review of energy system flexibility measures to enable high levels of variable renewable electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 785-807.
    10. Yan, Xing & Ozturk, Yusuf & Hu, Zechun & Song, Yonghua, 2018. "A review on price-driven residential demand response," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 411-419.
    11. Azzopardi, Brian & Gabriel-Buenaventura, Alejandro, 2014. "Feasibility assessment for high penetration of distributed photovoltaics based on net demand planning," Energy, Elsevier, vol. 76(C), pages 233-240.
    12. He, Yongxiu & Wang, Bing & Wang, Jianhui & Xiong, Wei & Xia, Tian, 2012. "Residential demand response behavior analysis based on Monte Carlo simulation: The case of Yinchuan in China," Energy, Elsevier, vol. 47(1), pages 230-236.
    13. Erdinc, Ozan, 2014. "Economic impacts of small-scale own generating and storage units, and electric vehicles under different demand response strategies for smart households," Applied Energy, Elsevier, vol. 126(C), pages 142-150.
    14. Y, Kiguchi & Y, Heo & M, Weeks & R, Choudhary, 2019. "Predicting intra-day load profiles under time-of-use tariffs using smart meter data," Energy, Elsevier, vol. 173(C), pages 959-970.
    15. Alagoz, B. Baykant & Kaygusuz, Asim & Akcin, Murat & Alagoz, Serkan, 2013. "A closed-loop energy price controlling method for real-time energy balancing in a smart grid energy market," Energy, Elsevier, vol. 59(C), pages 95-104.
    16. Anjo, João & Neves, Diana & Silva, Carlos & Shivakumar, Abhishek & Howells, Mark, 2018. "Modeling the long-term impact of demand response in energy planning: The Portuguese electric system case study," Energy, Elsevier, vol. 165(PA), pages 456-468.
    17. Kiguchi, Y. & Weeks, M. & Arakawa, R., 2021. "Predicting winners and losers under time-of-use tariffs using smart meter data," Energy, Elsevier, vol. 236(C).
    18. Saffari, Mohammadali & Crownshaw, Timothy & McPherson, Madeleine, 2023. "Assessing the potential of demand-side flexibility to improve the performance of electricity systems under high variable renewable energy penetration," Energy, Elsevier, vol. 272(C).
    19. Vardakas, John S. & Zorba, Nizar & Verikoukis, Christos V., 2015. "Performance evaluation of power demand scheduling scenarios in a smart grid environment," Applied Energy, Elsevier, vol. 142(C), pages 164-178.
    20. Linas Gelažanskas & Kelum A. A. Gamage, 2016. "Distributed Energy Storage Using Residential Hot Water Heaters," Energies, MDPI, vol. 9(3), pages 1-13, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:63:y:2013:i:c:p:233-244. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.