IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i6p1307-d1353821.html
   My bibliography  Save this article

Electricity Cost Savings in Energy-Intensive Companies: Optimization Framework and Case Study

Author

Listed:
  • Pablo Benalcazar

    (Mineral and Energy Economy Research Institute, Polish Academy of Sciences, Wybickiego 7A, 31-261 Kraków, Poland)

  • Marcin Malec

    (Mineral and Energy Economy Research Institute, Polish Academy of Sciences, Wybickiego 7A, 31-261 Kraków, Poland)

  • Przemysław Kaszyński

    (Mineral and Energy Economy Research Institute, Polish Academy of Sciences, Wybickiego 7A, 31-261 Kraków, Poland)

  • Jacek Kamiński

    (Mineral and Energy Economy Research Institute, Polish Academy of Sciences, Wybickiego 7A, 31-261 Kraków, Poland)

  • Piotr W. Saługa

    (Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dąbrowa Gornicza, Poland)

Abstract

In recent years, there has been an increasing urgency among energy-intensive companies to find innovative ways of mitigating the negative financial impacts of rising fuel and electricity prices. Consequently, companies are exploring new technological solutions to lower electricity costs, such as investing in their own power generation sources or storage systems. In this context, this article presents a data-driven optimization-based framework to manage and optimize the operation of a hybrid energy system within industries characterized by substantial power requirements. The framework encompasses several key aspects: electricity generation, self-consumption, storage, and electric grid interaction. The case of an energy-intensive company specializing in wood processing and office furniture production is evaluated. This study explored two system configurations of hybrid energy systems within an energy-intensive company. The result of the analyzed case shows that the system’s flexibility is enhanced by its ability to store energy, resulting in electricity cost savings of nearly 72% and total operating cost savings of 20%.

Suggested Citation

  • Pablo Benalcazar & Marcin Malec & Przemysław Kaszyński & Jacek Kamiński & Piotr W. Saługa, 2024. "Electricity Cost Savings in Energy-Intensive Companies: Optimization Framework and Case Study," Energies, MDPI, vol. 17(6), pages 1-16, March.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:6:p:1307-:d:1353821
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/6/1307/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/6/1307/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Balderrama, Sergio & Lombardi, Francesco & Riva, Fabio & Canedo, Walter & Colombo, Emanuela & Quoilin, Sylvain, 2019. "A two-stage linear programming optimization framework for isolated hybrid microgrids in a rural context: The case study of the “El Espino” community," Energy, Elsevier, vol. 188(C).
    2. Kriett, Phillip Oliver & Salani, Matteo, 2012. "Optimal control of a residential microgrid," Energy, Elsevier, vol. 42(1), pages 321-330.
    3. Ottesen, Stig Odegaard & Tomasgard, Asgeir, 2015. "A stochastic model for scheduling energy flexibility in buildings," Energy, Elsevier, vol. 88(C), pages 364-376.
    4. MansourLakouraj, Mohammad & Shahabi, Majid & Shafie-khah, Miadreza & Catalão, João P.S., 2022. "Optimal market-based operation of microgrid with the integration of wind turbines, energy storage system and demand response resources," Energy, Elsevier, vol. 239(PB).
    5. Gomes, I.L.R. & Melicio, R. & Mendes, V.M.F., 2021. "A novel microgrid support management system based on stochastic mixed-integer linear programming," Energy, Elsevier, vol. 223(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Colambage, D. Punsara & Wijayapala, W.D. Anura S. & Siyambalapitiya, Tilak, 2024. "Analysing the impact of diverse factors on electricity generation cost: Insights from Sri Lanka," Energy, Elsevier, vol. 311(C).
    2. Dimitrios-Aristotelis Koumpakis & Alexandra V. Michailidou & Christos Vlachokostas, 2025. "Harnessing Pyrolysis for Industrial Energy Autonomy and Sustainable Waste Management," Energies, MDPI, vol. 18(12), pages 1-23, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bio Gassi, Karim & Baysal, Mustafa, 2023. "Improving real-time energy decision-making model with an actor-critic agent in modern microgrids with energy storage devices," Energy, Elsevier, vol. 263(PE).
    2. Zhang, Bin & Hu, Weihao & Xu, Xiao & Li, Tao & Zhang, Zhenyuan & Chen, Zhe, 2022. "Physical-model-free intelligent energy management for a grid-connected hybrid wind-microturbine-PV-EV energy system via deep reinforcement learning approach," Renewable Energy, Elsevier, vol. 200(C), pages 433-448.
    3. Jianying Li & Minsheng Yang & Yuexing Zhang & Jianqi Li & Jianquan Lu, 2023. "Micro-Grid Day-Ahead Stochastic Optimal Dispatch Considering Multiple Demand Response and Electric Vehicles," Energies, MDPI, vol. 16(8), pages 1-15, April.
    4. Guo, Yurun & Wang, Shugang & Wang, Jihong & Zhang, Tengfei & Ma, Zhenjun & Jiang, Shuang, 2024. "Key district heating technologies for building energy flexibility: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    5. Asad, R. & Kazemi, A., 2014. "A novel distributed optimal power sharing method for radial dc microgrids with different distributed energy sources," Energy, Elsevier, vol. 72(C), pages 291-299.
    6. Quddus, Md Abdul & Shahvari, Omid & Marufuzzaman, Mohammad & Ekşioğlu, Sandra D. & Castillo-Villar, Krystel K., 2021. "Designing a reliable electric vehicle charging station expansion under uncertainty," International Journal of Production Economics, Elsevier, vol. 236(C).
    7. Martin Bichler & Johannes Knörr & Felipe Maldonado, 2023. "Pricing in Nonconvex Markets: How to Price Electricity in the Presence of Demand Response," Information Systems Research, INFORMS, vol. 34(2), pages 652-675, June.
    8. Liu, Hong & Zhao, Yue & Gu, Chenghong & Ge, Shaoyun & Yang, Zan, 2021. "Adjustable capability of the distributed energy system: Definition, framework, and evaluation model," Energy, Elsevier, vol. 222(C).
    9. Ahmad Khan, Aftab & Naeem, Muhammad & Iqbal, Muhammad & Qaisar, Saad & Anpalagan, Alagan, 2016. "A compendium of optimization objectives, constraints, tools and algorithms for energy management in microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1664-1683.
    10. Juliano Camargo & Fred Spiessens & Chris Hermans, 2018. "A Network Flow Model for Price-Responsive Control of Deferrable Load Profiles," Energies, MDPI, vol. 11(3), pages 1-17, March.
    11. Fathy, Ahmed & Ferahtia, Seydali & Rezk, Hegazy & Yousri, Dalia & Abdelkareem, Mohammad Ali & Olabi, A.G., 2022. "Optimal adaptive fuzzy management strategy for fuel cell-based DC microgrid," Energy, Elsevier, vol. 247(C).
    12. Ferruzzi, Gabriella & Cervone, Guido & Delle Monache, Luca & Graditi, Giorgio & Jacobone, Francesca, 2016. "Optimal bidding in a Day-Ahead energy market for Micro Grid under uncertainty in renewable energy production," Energy, Elsevier, vol. 106(C), pages 194-202.
    13. Gomez-Herrera, Juan A. & Anjos, Miguel F., 2018. "Optimal collaborative demand-response planner for smart residential buildings," Energy, Elsevier, vol. 161(C), pages 370-380.
    14. Finck, Christian & Li, Rongling & Kramer, Rick & Zeiler, Wim, 2018. "Quantifying demand flexibility of power-to-heat and thermal energy storage in the control of building heating systems," Applied Energy, Elsevier, vol. 209(C), pages 409-425.
    15. Pablo Jimenez Zabalaga & Evelyn Cardozo & Luis A. Choque Campero & Joseph Adhemar Araoz Ramos, 2020. "Performance Analysis of a Stirling Engine Hybrid Power System," Energies, MDPI, vol. 13(4), pages 1-38, February.
    16. Setlhaolo, Ditiro & Sichilalu, Sam & Zhang, Jiangfeng, 2017. "Residential load management in an energy hub with heat pump water heater," Applied Energy, Elsevier, vol. 208(C), pages 551-560.
    17. Aguado, José A. & Paredes, Ángel, 2023. "Coordinated and decentralized trading of flexibility products in Inter-DSO Local Electricity Markets via ADMM," Applied Energy, Elsevier, vol. 337(C).
    18. Isaías Gomes & Rui Melicio & Victor M. F. Mendes, 2021. "Assessing the Value of Demand Response in Microgrids," Sustainability, MDPI, vol. 13(11), pages 1-16, May.
    19. Nemanja Mišljenović & Matej Žnidarec & Goran Knežević & Damir Šljivac & Andreas Sumper, 2023. "A Review of Energy Management Systems and Organizational Structures of Prosumers," Energies, MDPI, vol. 16(7), pages 1-32, March.
    20. Velik, Rosemarie & Nicolay, Pascal, 2014. "Grid-price-dependent energy management in microgrids using a modified simulated annealing triple-optimizer," Applied Energy, Elsevier, vol. 130(C), pages 384-395.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:17:y:2024:i:6:p:1307-:d:1353821. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.