A universal optimization framework for commercial building loads using DERs from utility tariff perspective with tariff change impacts analysis
To accommodate the changes in the nature and the pattern of electricity consumption with the available resources, utilities have introduced variety of tariffs over the years. This paper develops a comprehensive optimization framework that addresses the challenges associated with the diversity of uti...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2023-12-01
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| Series: | Energy Reports |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2352484723007783 |
| _version_ | 1797781869044957184 |
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| author | A S M Jahid Hasan Luis Fernando Enriquez-Contreras Jubair Yusuf Sadrul Ula |
| author_facet | A S M Jahid Hasan Luis Fernando Enriquez-Contreras Jubair Yusuf Sadrul Ula |
| author_sort | A S M Jahid Hasan |
| collection | DOAJ |
| description | To accommodate the changes in the nature and the pattern of electricity consumption with the available resources, utilities have introduced variety of tariffs over the years. This paper develops a comprehensive optimization framework that addresses the challenges associated with the diversity of utility tariffs for commercial loads. Optimization of commercial building net load through Battery Energy Storage System (BESS) and renewable energy resources is modeled and explored for minimizing billing cost for different tariffs. Cost functions are formulated for each possible commercial utility tariff type, engendering the universal cost function format. An algorithm is developed to apply the optimization model and generate the desired optimal outputs (e.g., optimal net load and BESS power, costs and savings, etc.). The results for several building loads and all tariff types are compared and analyzed to present the findings. An impacts analysis is performed to observe how different changes in tariffs affect the optimizations results. Results exhibit that for same building load and renewable generation, the tariff type can have an overwhelming impact on costs and savings. Tariffs without Time of Use (TOU) charges or peak demand charge components offer lower savings opportunity from BESS optimization. Price change sensitivities showed the complicated dynamics among TOU price components on savings and historical trend analysis as an effective tool to predict future savings. Tradeoff between energy and demand charge heavy tariff options are also discussed for user benefit. The recent change in TOU time periods presents limited desired benefits while the modified tariff proposed in this paper exhibit significant improvement in terms of utility operation. |
| first_indexed | 2024-03-13T00:03:00Z |
| format | Article |
| id | doaj.art-9bc847911ceb4330af6075858729b745 |
| institution | Directory Open Access Journal |
| issn | 2352-4847 |
| language | English |
| last_indexed | 2024-03-13T00:03:00Z |
| publishDate | 2023-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Energy Reports |
| spelling | doaj.art-9bc847911ceb4330af6075858729b7452023-07-13T05:30:16ZengElsevierEnergy Reports2352-48472023-12-01960886101A universal optimization framework for commercial building loads using DERs from utility tariff perspective with tariff change impacts analysisA S M Jahid Hasan0Luis Fernando Enriquez-Contreras1Jubair Yusuf2Sadrul Ula3College of Engineering-Center for Environmental Research and Technology (CE-CERT), University of California, Riverside, CA 92507, USA; Department of Electrical and Computer Engineering, North South University, Dhaka, Bangladesh; Corresponding author.College of Engineering-Center for Environmental Research and Technology (CE-CERT), University of California, Riverside, CA 92507, USACollege of Engineering-Center for Environmental Research and Technology (CE-CERT), University of California, Riverside, CA 92507, USA; Electric Power Systems Research, Sandia National Laboratories, Albuquerque, NM, USACollege of Engineering-Center for Environmental Research and Technology (CE-CERT), University of California, Riverside, CA 92507, USATo accommodate the changes in the nature and the pattern of electricity consumption with the available resources, utilities have introduced variety of tariffs over the years. This paper develops a comprehensive optimization framework that addresses the challenges associated with the diversity of utility tariffs for commercial loads. Optimization of commercial building net load through Battery Energy Storage System (BESS) and renewable energy resources is modeled and explored for minimizing billing cost for different tariffs. Cost functions are formulated for each possible commercial utility tariff type, engendering the universal cost function format. An algorithm is developed to apply the optimization model and generate the desired optimal outputs (e.g., optimal net load and BESS power, costs and savings, etc.). The results for several building loads and all tariff types are compared and analyzed to present the findings. An impacts analysis is performed to observe how different changes in tariffs affect the optimizations results. Results exhibit that for same building load and renewable generation, the tariff type can have an overwhelming impact on costs and savings. Tariffs without Time of Use (TOU) charges or peak demand charge components offer lower savings opportunity from BESS optimization. Price change sensitivities showed the complicated dynamics among TOU price components on savings and historical trend analysis as an effective tool to predict future savings. Tradeoff between energy and demand charge heavy tariff options are also discussed for user benefit. The recent change in TOU time periods presents limited desired benefits while the modified tariff proposed in this paper exhibit significant improvement in terms of utility operation.http://www.sciencedirect.com/science/article/pii/S2352484723007783Building loadOptimizationUtility tariffEnergy storageRenewable generation |
| spellingShingle | A S M Jahid Hasan Luis Fernando Enriquez-Contreras Jubair Yusuf Sadrul Ula A universal optimization framework for commercial building loads using DERs from utility tariff perspective with tariff change impacts analysis Energy Reports Building load Optimization Utility tariff Energy storage Renewable generation |
| title | A universal optimization framework for commercial building loads using DERs from utility tariff perspective with tariff change impacts analysis |
| title_full | A universal optimization framework for commercial building loads using DERs from utility tariff perspective with tariff change impacts analysis |
| title_fullStr | A universal optimization framework for commercial building loads using DERs from utility tariff perspective with tariff change impacts analysis |
| title_full_unstemmed | A universal optimization framework for commercial building loads using DERs from utility tariff perspective with tariff change impacts analysis |
| title_short | A universal optimization framework for commercial building loads using DERs from utility tariff perspective with tariff change impacts analysis |
| title_sort | universal optimization framework for commercial building loads using ders from utility tariff perspective with tariff change impacts analysis |
| topic | Building load Optimization Utility tariff Energy storage Renewable generation |
| url | http://www.sciencedirect.com/science/article/pii/S2352484723007783 |
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