Industrial Demand Side Management Formulation for Simultaneous Electricity Load Commitment and Future Load Prediction

Large consumers’ electricity bills depend on many factors including different electricity purchasing contracts and markets, deviation penalties, and grid fees. Two key markets are the intraday and the day-ahead markets. On the day-ahead market, the consumer commits to a load of electricity that stacks on top of their longer-term contract commitments. The next day, the consumer must follow this demand profile to avoid paying deviation penalties. The demand curve can be modified on the existing day using the intraday market. A novel demand side response formulation is proposed that considers a two-day horizon for both the intraday and the day-ahead markets by a separate modeling approach. Results show that this formulation can effectively combine intraday and day-ahead market concerns and that the resulting demand profile from the two-day problem is more realistic than current models, which consider only a single-day problem.