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Operational optimization of a grid-connected factory with onsite photovoltaic and battery storage systems

Author

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  • Zhang, Hao
  • Cai, Jie
  • Fang, Kan
  • Zhao, Fu
  • Sutherland, John W.

Abstract

Driven by fast advancements in wind and photovoltaic (PV) technologies, onsite renewable electricity generation is becoming attractive to manufacturers since they are able to reduce electricity purchases from the grid and may lower their electricity costs. This paper proposes a methodology to minimize the electricity cost of a grid-connected factory that also has onsite solar power generation and battery storage. Purchases from the grid are subject to time-of-use electricity rate schedules. The problem is formulated asa mixed-integer programming problem and GAMS is used to find the optimal manufacturing and onsite energy flow schedules that have the minimal electricity cost. A case study with one hybrid flow shop, onsite PV power generation, and a battery was used to test the proposed method. Testing results showed that the factory’s electricity cost can be reduced by 54.0% under summer TOU rate on a typical day while a 0.7% electricity cost reduction can be achieved for a representative day under a winter TOU rate. An annual electricity cost savings of 28.1% can be obtained with the optimal schedules. In addition, a parametric study incorporating the optimal schedules was performed to understand the economic performances associated with different PV capacity and battery bank size for the factory.

Suggested Citation

  • Zhang, Hao & Cai, Jie & Fang, Kan & Zhao, Fu & Sutherland, John W., 2017. "Operational optimization of a grid-connected factory with onsite photovoltaic and battery storage systems," Applied Energy, Elsevier, vol. 205(C), pages 1538-1547.
    • Handle: RePEc:eee:appene:v:205:y:2017:i:c:p:1538-1547
    DOI: 10.1016/j.apenergy.2017.08.140
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    10. Ma, Tao & Zhang, Yijie & Gu, Wenbo & Xiao, Gang & Yang, Hongxing & Wang, Shuxiao, 2022. "Strategy comparison and techno-economic evaluation of a grid-connected photovoltaic-battery system," Renewable Energy, Elsevier, vol. 197(C), pages 1049-1060.
    11. Mohammed Jasim M. Al Essa, 2025. "A review on price-driven energy management systems and demand response programs in smart grids," Environment Systems and Decisions, Springer, vol. 45(1), pages 1-22, March.
    12. Ghorbanzadeh, Masoumeh & Ranjbar, Mohammad, 2023. "Energy-aware production scheduling in the flow shop environment under sequence-dependent setup times, group scheduling and renewable energy constraints," European Journal of Operational Research, Elsevier, vol. 307(2), pages 519-537.
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    14. Weiwei Cui & Lin Li & Zhiqiang Lu, 2019. "Energy‐efficient scheduling for sustainable manufacturing systems with renewable energy resources," Naval Research Logistics (NRL), John Wiley & Sons, vol. 66(2), pages 154-173, March.
    15. Golpîra, Hêriş, 2020. "Smart Energy-Aware Manufacturing Plant Scheduling under Uncertainty: A Risk-Based Multi-Objective Robust Optimization Approach," Energy, Elsevier, vol. 209(C).
    16. Walden, Jasper V.M. & Bähr, Martin & Glade, Anselm & Gollasch, Jens & Tran, A. Phong & Lorenz, Tom, 2023. "Nonlinear operational optimization of an industrial power-to-heat system with a high temperature heat pump, a thermal energy storage and wind energy," Applied Energy, Elsevier, vol. 344(C).
    17. Leherbauer, Dominik & Schulz, Julia & Egyed, Alexander & Hehenberger, Peter, 2025. "Demand-side management in less energy-intensive industries: A systematic mapping study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 212(C).
    18. Esmaeil Valipour & Ramin Nourollahi & Kamran Taghizad-Tavana & Sayyad Nojavan & As’ad Alizadeh, 2022. "Risk Assessment of Industrial Energy Hubs and Peer-to-Peer Heat and Power Transaction in the Presence of Electric Vehicles," Energies, MDPI, vol. 15(23), pages 1-24, November.
    19. Belsky, A.A. & Glukhanich, D.Y. & Carrizosa, M.J. & Starshaia, V.V., 2022. "Analysis of specifications of solar photovoltaic panels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).

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