Optimizing Hotel Energy Consumption Through Energy Storage and a Novel Regulatory Framework

More hotels are significant energy consumers, and optimizing their energy consumption is essential for reducing their energy costs. Additionally, reliability is crucial for hotels, as power outages or disruptions can have significant impacts on guest experience and business operations. This paper proposes a novel regulatory framework called the hotel renewable energy incentive program for optimizing hotel energy consumption through battery energy storage systems integrated with renewable energy sources. The proposed framework and revenue calculations are formulated based on renewable energy generation and excess energy fed back into the grid. Mixed integer nonlinear programming is used to determine the optimal battery capacity, which allows the hotel to generate and store excess energy more efficiently and earn more revenue through the hotel renewable energy incentive program (HREIP). This research compared the results of the proposed framework with those of standard available frameworks such as net metering (NM) and feed in tarif (FIT). The framework offers a sustainable and cost-effective solution for optimizing hotel energy consumption. The proposed HREIP led to a total cost reduction from ${\$}$ 1042.2 to ${\$}$ 944.84, outperforming other policies and achieving a 9.3% cost reduction. Additionally, the contribution of renewable energy sources increased from 30% without any policy to 31%, 41%, and 43% in the HREIP, FiT, and NM schemes, respectively.