Stochastic Decision-Making Optimization Model for Large Electricity Self-Producers Using Natural Gas in Industrial Processes: An Approach Considering a Regret Cost Function

In the context of high energy costs and energy transition, the optimal use of energy resources for industrial consumption is of fundamental importance. This paper presents a decision-making structure for large consumers with flexibility to manage electricity or natural gas consumption to satisfy the...

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Bibliographic Details
Published inEnergies (Basel) Vol. 17; no. 21; p. 5389
Main Authors Leonel, Laís Domingues, Balan, Mateus Henrique, Camargo, Luiz Armando Steinle, Ramos, Dorel Soares, Castro, Roberto, Clemente, Felipe Serachiani
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.11.2024
Subjects
Alternative energy sources
Aluminum industry
Consumers
Decision making
Economic aspects
Electricity
energy procurement
Energy transition
Flexibility
Integer programming
integrated stochastic optimization model
Investment analysis
load-supply flexibility
Market prices
Mathematical functions
Natural gas
Optimization
Power plants
Production processes
regret cost function
Brazil
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Summary:In the context of high energy costs and energy transition, the optimal use of energy resources for industrial consumption is of fundamental importance. This paper presents a decision-making structure for large consumers with flexibility to manage electricity or natural gas consumption to satisfy the demands of industrial processes. The proposed modelling energy system structure relates monthly medium and hourly short-term decisions to which these agents are subjected, represented by two connected optimization models. In the medium term, the decision occurs under uncertain conditions of energy and natural gas market prices, as well as hydropower generation (self-production). The monthly decision is represented by a risk-constrained optimization model. In the short term, hourly optimization considers the operational flexibility of energy and/or natural gas consumption, subject to the strategy defined in the medium term and mathematically connected by a regret cost function. The model application of a real case of a Brazilian aluminum producer indicates a measured energy cost reduction of USD 3.98 millions over a six-month analysis period.
ISSN:1996-1073
1996-1073
DOI:10.3390/en17215389