Demand charges reduction with photovoltaics in industry

Demand charges are widely used for commercial and industrial consumers. These costs are often not well known, let alone the effects that PV can have on them. This work proposes a methodology to assess the effect of PV on reducing these charges and to optimise the power to be contracted, using techni...

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Main Authors: Ángel Ordóñez, Esteban Sánchez, Juan Carlos Solano, Javier Parra-Domínguez
Format: Article
Language:English
Published: Elsevier 2024-01-01
Series:Heliyon
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2405844023106128
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author Ángel Ordóñez
Esteban Sánchez
Juan Carlos Solano
Javier Parra-Domínguez
author_facet Ángel Ordóñez
Esteban Sánchez
Juan Carlos Solano
Javier Parra-Domínguez
author_sort Ángel Ordóñez
collection DOAJ
description Demand charges are widely used for commercial and industrial consumers. These costs are often not well known, let alone the effects that PV can have on them. This work proposes a methodology to assess the effect of PV on reducing these charges and to optimise the power to be contracted, using techniques taken from exploratory data analysis. This methodology is applied to five case studies of industrial consumers from different sectors in Spain, finding savings between 5 % and 11 % of demand charges in industries with continuous operation and up to 28 % in cases of discontinuous operation. These savings can be even greater if the maximum power that can be contracted is lower than the optimum. The demand charges in Spain consist of a fixed part proportional to the contracted power and a variable part depending on the power peaks exceeding it. Since for the variable part the coincident and non-coincident models coexist, a comparison is made between the two models, finding that in the general case PV users can achieve higher savings with the coincident model.
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spelling doaj.art-6b70b083a70c495bb8529b516b616cf12024-02-01T06:31:45ZengElsevierHeliyon2405-84402024-01-01101e23404Demand charges reduction with photovoltaics in industryÁngel Ordóñez0Esteban Sánchez1Juan Carlos Solano2Javier Parra-Domínguez3Facultad de la Energía, Universidad Nacional de Loja, Avda. Pío Jaramillo Alvarado, 110110 Loja, Ecuador; Escuela Técnica Superior de Ingeniería Industrial, Universidad de Salamanca, Avda. Fernando Ballesteros, 2, 37700 Béjar, SpainEscuela Técnica Superior de Ingeniería Industrial, Universidad de Salamanca, Avda. Fernando Ballesteros, 2, 37700 Béjar, Spain; Corresponding author.Facultad de la Energía, Universidad Nacional de Loja, Avda. Pío Jaramillo Alvarado, 110110 Loja, EcuadorEscuela Técnica Superior de Ingeniería Industrial, Universidad de Salamanca, Avda. Fernando Ballesteros, 2, 37700 Béjar, Spain; Department of Business Studies - School of Economics and Business, University of Salamanca, Campus Miguel de Unamuno, P.° Francisco Tomás y Valiente, s/n, 37007 Salamanca, Spain; BISITE Research Group, Edificio I+D+i - C, C. Espejo, s/n, 37007 Salamanca, SpainDemand charges are widely used for commercial and industrial consumers. These costs are often not well known, let alone the effects that PV can have on them. This work proposes a methodology to assess the effect of PV on reducing these charges and to optimise the power to be contracted, using techniques taken from exploratory data analysis. This methodology is applied to five case studies of industrial consumers from different sectors in Spain, finding savings between 5 % and 11 % of demand charges in industries with continuous operation and up to 28 % in cases of discontinuous operation. These savings can be even greater if the maximum power that can be contracted is lower than the optimum. The demand charges in Spain consist of a fixed part proportional to the contracted power and a variable part depending on the power peaks exceeding it. Since for the variable part the coincident and non-coincident models coexist, a comparison is made between the two models, finding that in the general case PV users can achieve higher savings with the coincident model.http://www.sciencedirect.com/science/article/pii/S2405844023106128Photovoltaicsdemand chargesTOU tariffcndustrial self-consumptionExploratory data analysis
spellingShingle Ángel Ordóñez
Esteban Sánchez
Juan Carlos Solano
Javier Parra-Domínguez
Demand charges reduction with photovoltaics in industry
Heliyon
Photovoltaics
demand charges
TOU tariff
cndustrial self-consumption
Exploratory data analysis
title Demand charges reduction with photovoltaics in industry
title_full Demand charges reduction with photovoltaics in industry
title_fullStr Demand charges reduction with photovoltaics in industry
title_full_unstemmed Demand charges reduction with photovoltaics in industry
title_short Demand charges reduction with photovoltaics in industry
title_sort demand charges reduction with photovoltaics in industry
topic Photovoltaics
demand charges
TOU tariff
cndustrial self-consumption
Exploratory data analysis
url http://www.sciencedirect.com/science/article/pii/S2405844023106128
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AT estebansanchez demandchargesreductionwithphotovoltaicsinindustry
AT juancarlossolano demandchargesreductionwithphotovoltaicsinindustry
AT javierparradominguez demandchargesreductionwithphotovoltaicsinindustry