Efficient Energy Management of a Time-of-Use Rate Industrial User for Smart Cities

Abstract

With increasing of the development of smart grid and restructuring of the power industry, the efficient operation schedule for a time-of-use (TOU) rate industrial user may become a more important problem in smart cities. This paper develops a stochastic direct search method (SDSM) to solve the operating schedule of a TOU rate industrial user. To effectively overcome the coupling constraints of the operating schedule problem, the three-state dynamic programming (DP) is also incorporated into the SDSM to augment the direct stochastic search procedure. A TOU rate industrial customer of Taiwan Power Company (TPC) is used as an example to validate the feasibility of the SDSM algorithm for the application considered. Numerical experiments are included to illustrate the effects of battery energy storage system (BESS) on operating schedule and to assess the impact and economic benefits of the installation of renewable energy sources (RES) for the TOU rate industrial customer.