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

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.