Demand response and energy storage systems: An industrial application for reducing electricity costs. Part I: Theoretical aspects

In this paper, the benefits that can be derived from the installation of an energy storage system in an industrial facility are analyzed, and an optimal control strategy of the storage system is proposed. The proposed control strategy is based on a two-step procedure and aims at (i) reducing the electricity costs sustained by an industrial customer that provides demand response and (ii) satisfying technical constraints for the maximization of the efficiency and lifecycle of the storage system. The procedure was performed based on two different time periods, i.e., day ahead and very short time. The day-ahead scheduling evaluates the peak value of the power that the facility must request from the grid and the periods in which the battery is allowed to charge and discharge; the very short-time control evaluates the battery's charging/discharging power to minimize costs. This paper reports the theoretical aspects of the optimization models for the two-step procedure, whereas the companion paper “Part II: numerical applications” proposes the results of numerical applications of the proposed approach on an actual industrial facility.