An MILP framework for optimizing demand response operation of air separation units
Renewable electricity generation and consumer demand are desynchronized in time, posing a challenge for grid operators. Industrial demand response (DR), has emerged as a strong candidate for mitigating demand variability. In this paper, we demonstrate the application of DR to an air separation unit (ASU), a chemical process that consumes significant amounts of electricity. We develop a novel optimal production scheduling framework that accounts for day-ahead electricity prices to modulate the grid load presented by the plant. Our framework accounts for the dynamics of the plant using a novel dynamic modeling framework. Further, we present a new decomposition scheme that allows us to solve the corresponding optimization problem in a matter of minutes. Extensive simulation results show significant reductions in operating costs (that benefit the plant) and reductions in peak power demand (which benefits the grid).