Work

Evaluating Demand Response Particibility Potential of Process Systems using Levelized Cost Analysis

Year: 2025

Type: article

Abstract: This work examines the impact of process design decisions on the ability of a process to participate in Demand Response (DR) activities. Focusing on load shifting capabilities, the DR particibility potential of a given process design is evaluated using the notion of levelized cost of the load-shifting capacity, which is taken as a measure of an overall cost of the design decisions over the lifetime of the process. Initially, the concept of levelized cost of energy (LCOE), or levelized cost of electricity, is introduced and adapted to capture the levelized cost of load-shifting (LCOL). Then, a bottom-up approach to calculate the load-shifting capacity for a given process design, and the associated levelized cost, is developed based on an MILP scheduling model. The implementation of the proposed approach is demonstrated using a conceptual case study involving a reactor-storage process with a discretized scheduling model. The case study investigates the in load-shifting capacities when considering DR participation in a day-ahead electricity market versus participation in a five-minute market.

Source: IFAC-PapersOnLine

DOI: 10.1016/j.ifacol.2025.07.154

Authors: Yu Liu, Ahmet Palazoglu, Nael H. El-Farra

Institution: University of California, Davis

Language: English

Topic: Smart Grid Energy Management

Subfield: Electrical and Electronic Engineering

Field: Engineering

Domain: Physical Sciences

SDGs: Affordable and clean energy, Industry, innovation and infrastructure, Climate action

Open Access status: diamond

Funder: University of California, Davis