Implementing factory demand response via onsite renewable energy: a design-of-experiment approach

This paper proposes the implementation of demand response (DR) programmes in large manufacturing facilities featuring distributed wind and solar energy. Manufacturing facilities are high consumers of electric power. For this reason, these facilities usually pay exorbitant utility bills, which could be as much as $10–20 million per year. A high consumption of electricity also means that upstream fossil-fuelled power plants must release thousands of metric tonnes of carbon annually during the generation of electricity. DR contracts offer a lower utility rate in return for a load reduction during contingent events (i.e. peak hours). This paper covers the modelling and implementation of an interruptible/curtailable DR programme participated by a manufacturer that possesses onsite renewable generation units. These complementary energy resources allow the manufacturer to meet the curtailment requirements without causing any major electricity shortage that adversely affects the normal production schedule. We developed a stochastic programming model to determine the capacity of the wind turbine and solar panels that maximise the DR programme savings. The optimal solutions are derived based on central composite design methodology.