Optimization of iron and steel manufacturing plant considering electricity price tariff and electric arc furnace control

Abstract The iron and steel industry, which is a highly energy‐intensive sector, seeks to increase energy efficiency and reduce operating costs by optimizing the distributions of byproduct gases, steam, and electricity throughout the production process. The operating costs of an iron and steel plant...

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Main Authors: Seok‐Young Lee, Gyu‐Sub Lee, Seung‐Il Moon, Yong‐Tae Yoon
Format: Article
Language:English
Published: Wiley 2023-11-01
Series:IET Generation, Transmission & Distribution
Subjects:
Online Access:https://doi.org/10.1049/gtd2.13017
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author Seok‐Young Lee
Gyu‐Sub Lee
Seung‐Il Moon
Yong‐Tae Yoon
author_facet Seok‐Young Lee
Gyu‐Sub Lee
Seung‐Il Moon
Yong‐Tae Yoon
author_sort Seok‐Young Lee
collection DOAJ
description Abstract The iron and steel industry, which is a highly energy‐intensive sector, seeks to increase energy efficiency and reduce operating costs by optimizing the distributions of byproduct gases, steam, and electricity throughout the production process. The operating costs of an iron and steel plant typically include the purchase cost of liquefied natural gas fuel, electricity, and penalties for byproduct gas holders. Electricity tariffs have a significant impact on energy costs through two factors: the energy charge, which is related to energy consumption varying with time, and the demand charge, which is proportional to the peak power. In this study, the characteristics of electricity tariffs and multi‐energy systems, specifically for iron and steel plants, are considered. In the proposed method, electric arc furnaces are employed as controllable units to flexibly manage the power load. The optimization model utilized in the plant adopts a mixed‐integer linear programming approach to minimize the overall operating costs. Several case studies were conducted to verify the effectiveness of the proposed methods, and the total costs associated with different cases were compared.
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spelling doaj.art-d913282522684785aa5c670e784a23972023-11-17T06:51:33ZengWileyIET Generation, Transmission & Distribution1751-86871751-86952023-11-0117225027504010.1049/gtd2.13017Optimization of iron and steel manufacturing plant considering electricity price tariff and electric arc furnace controlSeok‐Young Lee0Gyu‐Sub Lee1Seung‐Il Moon2Yong‐Tae Yoon3Department of Electrical and Computer Engineering Seoul National University (SNU) Seoul South KoreaDepartment of Energy Engineering Korea Institute of Energy Technology (KENTECH) Naju South KoreaDepartment of Energy Engineering Korea Institute of Energy Technology (KENTECH) Naju South KoreaDepartment of Electrical and Computer Engineering Seoul National University (SNU) Seoul South KoreaAbstract The iron and steel industry, which is a highly energy‐intensive sector, seeks to increase energy efficiency and reduce operating costs by optimizing the distributions of byproduct gases, steam, and electricity throughout the production process. The operating costs of an iron and steel plant typically include the purchase cost of liquefied natural gas fuel, electricity, and penalties for byproduct gas holders. Electricity tariffs have a significant impact on energy costs through two factors: the energy charge, which is related to energy consumption varying with time, and the demand charge, which is proportional to the peak power. In this study, the characteristics of electricity tariffs and multi‐energy systems, specifically for iron and steel plants, are considered. In the proposed method, electric arc furnaces are employed as controllable units to flexibly manage the power load. The optimization model utilized in the plant adopts a mixed‐integer linear programming approach to minimize the overall operating costs. Several case studies were conducted to verify the effectiveness of the proposed methods, and the total costs associated with different cases were compared.https://doi.org/10.1049/gtd2.13017energy management systemsoptimal controlsteel industrytariffs
spellingShingle Seok‐Young Lee
Gyu‐Sub Lee
Seung‐Il Moon
Yong‐Tae Yoon
Optimization of iron and steel manufacturing plant considering electricity price tariff and electric arc furnace control
IET Generation, Transmission & Distribution
energy management systems
optimal control
steel industry
tariffs
title Optimization of iron and steel manufacturing plant considering electricity price tariff and electric arc furnace control
title_full Optimization of iron and steel manufacturing plant considering electricity price tariff and electric arc furnace control
title_fullStr Optimization of iron and steel manufacturing plant considering electricity price tariff and electric arc furnace control
title_full_unstemmed Optimization of iron and steel manufacturing plant considering electricity price tariff and electric arc furnace control
title_short Optimization of iron and steel manufacturing plant considering electricity price tariff and electric arc furnace control
title_sort optimization of iron and steel manufacturing plant considering electricity price tariff and electric arc furnace control
topic energy management systems
optimal control
steel industry
tariffs
url https://doi.org/10.1049/gtd2.13017
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AT gyusublee optimizationofironandsteelmanufacturingplantconsideringelectricitypricetariffandelectricarcfurnacecontrol
AT seungilmoon optimizationofironandsteelmanufacturingplantconsideringelectricitypricetariffandelectricarcfurnacecontrol
AT yongtaeyoon optimizationofironandsteelmanufacturingplantconsideringelectricitypricetariffandelectricarcfurnacecontrol