Predictive Demand-Side Management Optimization
By: Ali Mehmani, Head of Core Research at Prescriptive Data
Wednesday, January 22, 2020 | 2:00-3:00pm (EDT)
Demand-side management (DSM) in response to market-based electricity tariffs can potentially increase the efficiency and reliability of the electric power grid. We introduce a novel, one-day-ahead DSM framework which optimizes temperature setpoints and battery dispatch in office buildings, subject to a time-varying and/or demand-based electricity tariff. To reflect real world implementation, our framework operates in two-steps. First, during the passive, battery-only DSM optimization, historical weather and electricity load data for a given building are used to determine its optimal battery capacity. Second, once the battery has been installed, a one-day-ahead, real-time DSM algorithm optimizes both the building’s daily temperature setpoints and the battery's charge/discharge pattern. The optimization objective is to minimize the total operating cost (tariff charges and battery system) while still satisfying occupants’ thermal comfort.