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Review of Power Market Optimization Strategies Based on Industrial Load Flexibility

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  • Caixin Yan

    (School of Automation, Central South University, Changsha 410083, China)

  • Zhifeng Qiu

    (School of Automation, Central South University, Changsha 410083, China)

Abstract

New power systems, predominantly based on renewable energy, necessitate active load-side management to effectively alleviate the pressures associated with balancing supply-side fluctuations and demand-side energy requirements. Concurrently, as power markets continue to evolve, both the energy market and ancillary services market offer valuable guidance for the optimal economic dispatch of industrial loads. Although substantial energy-saving potential exists within industrial production processes, their inherent complexity, dynamic nature, and mixed continuous–discrete modal characteristics present significant challenges in achieving accurate and efficient demand-side response. Conversely, the ongoing advancement of industrial internet techniques lays a robust technical foundation for the reliable, stable, and economically efficient operation of new power systems with large-scale industrial load response. This paper starts from the industrial load, discusses the resources and advantages and disadvantages of the industry itself, and carefully distinguishes the advantages and disadvantages of participating in the power market to make decisions. This paper provides a comprehensive review of intelligent optimization and regulation of industrial load flexibility in response to new power systems. Firstly, it synthesizes the three prevalent demand response strategies (load shedding, load shifting, and load substitution), along with their associated regulatory techniques, considering the operational characteristics of various industrial sectors. It then examines the trading strategies and modeling challenges of flexible industrial loads within two power market environments: the energy market and the ancillary services market. Subsequently, using the non-ferrous industry electrolytic process as a case study, it explores the optimization of production process parameters under energy usage planning. Finally, from the perspectives of market, technical innovation, and stakeholder engagement, it highlights the unresolved issues and provides insights into future research directions concerning the intelligent, digital, and market-driven integration of flexible industrial load flexibility.

Suggested Citation

  • Caixin Yan & Zhifeng Qiu, 2025. "Review of Power Market Optimization Strategies Based on Industrial Load Flexibility," Energies, MDPI, vol. 18(7), pages 1-41, March.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:7:p:1569-:d:1617464
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