Peak Load Management in Electrolytic Process Industries

Electrolytic process, employed for manufacturing basic chemicals like caustic soda and chlorine, is highly energy intensive. Due to escalating costs of fossil fuels and capacity addition, the electricity cost has been increasing for the last few decades. Electricity intensive industries find it very difficult to cope up with higher electricity charges particularly with time-of-use (TOU) tariffs implemented by the utilities with the objective of flattening the load curve. Load management programs focusing on reduced electricity use at the time of utility's peak demand, by strategic load shifting, is a viable option for industries to reduce their electricity cost. This paper presents an optimization model and formulation for load management for electrolytic process industries. The formulation utilizes mixed integer nonlinear programming (MINLP) technique for minimizing the electricity cost and reducing the peak demand, by rescheduling the loads, satisfying the industry constraints. The case study of a typical caustic-chlorine plant shows that a reduction of about 19% in the peak demand with a corresponding saving of about 3.9% in the electricity cost is possible with the optimal load scheduling under TOU tariff.