Optimal Operation of Industrial Energy Hubs in Smart Grids

Abstract

This paper presents the development of a generic optimal industrial load management (OILM) model, which can be readily incorporated into energy hub management systems (EHMSs) for industrial customers, in interaction with local distribution companies (LDCs), for automated and optimal scheduling of their processes. The mathematical models comprise an objective function to minimize the total energy costs and/or demand charges for industrial customers, and a set of equality and inequality constraints to represent the industrial process, storage units, distribution system components, operator's requirements, and other relevant constraints. The effectiveness of the proposed OILM model is demonstrated in two industrial customers: 1) a flour mill; and 2) a water pumping facility. The results show that the proposed OILM model, in conjunction with communication and control infrastructures at the customer and LDC levels, would allow optimal operation of industrial EHMSs in smart grids.