Simulation-Based Investigations on Electricity Demand Response for Manufacturing Systems to Mitigate overgeneration Due to High Penetration of Renewable Sources

Electricity demand response is an effective tool that can mitigate overgeneration due to high penetration of renewable sources in electricity grid by providing additional desired electricity consumption to match generation. In this paper, we propose a simulation based methodology to investigate the potential benefits by participating overgeneration mitigation oriented demand response program for manufacturers. A simulation platform is built so that various participation strategies of manufacturers can be examined and the effectiveness regarding cost reduction can be compared. An intuitive demand response strategy considering the utilization of onsite generation system is tested. Sensitivity analysis considering the effects of the variations due to production system parameters, such as machine rated power, machine production rate, etc., and demand response program parameters, such as incentive, penalty, etc., on the overall cost is conducted. The results are analyzed and some initial insights are discussed regarding the optimal control strategy for manufacturers when participating such overgeneration mitigation oriented demand response program