Optimal load management strategy under off-peak tariff riders in UTeM: a case study

Demand response (DR) program through tariff initiative has been established in Malaysia since 1990. The available time of use (TOU) tariff focuses on providing price signals to consumers, especially from industrial and commercial sectors. In achieving a certain standard for off-peak tariff rider (OPTR) initiative to receive discount rate, consumers must improve load factors compared to the baseline declared. However, not all consumers are able to commit. In Universiti Teknikal Malaysia Melaka (UTeM), the TOU (C1-OPTR) tariff is proposed and applied when the available cost discount of 20% can be enjoyed by sustaining the load factor improvement (LFI). A simulator projected a flexible optimal load profile referred by the energy management team to achieve the university's sustainable energy management goal. Thus, securing the LFI would allow the energy consumption (kWh) and peak demand (kW) to be managed concurrently. As for testing results for two buildings, the load factor improves to 0.40, and the maximum demand reduces by about 35 kW. When getting the 20% discount for the OPTR scheme, the total cost saving is forecasted approximately USD 29,441.40 yearly. The current pilot project presents a positive sign with the peak demand reduction and load factor improvement close to the simulator's optimal profile