An Incentive-Based Optimization Approach for Load Scheduling Problem in Smart Building Communities

Abstract

The impact of load growth on electricity peak demand is becoming a vital concern for utilities. To prevent the need to build new power plants or upgrade transmission lines, power companies are trying to design new demand response programs. These programs can reduce the peak demand and be beneficial for both energy consumers and suppliers. One of the most popular demand response programs is the building load scheduling for energy-saving and peak-shaving. This paper presents an autonomous incentive-based multi-objective nonlinear optimization approach for load scheduling problems (LSP) in smart building communities. This model’s objectives are three-fold: minimizing total electricity costs, maximizing assigned incentives for each customer, and minimizing inconvenience level. In this model, two groups of assets are considered: time-shiftable assets, including electronic appliances and plug-in electric vehicle (PEV) charging facilities, and thermal assets such as heating, ventilation, and air conditioning (HVAC) systems and electric water heaters. For each group, specific energy consumption and inconvenience level models were developed. The designed model assigned the incentives to the participants based on their willingness to reschedule their assets. The LSP is a discrete–continuous problem and is formulated based on a mixed-integer nonlinear programming approach. Zoutendijk’s method is used to solve the nonlinear optimization model. This formulation helps capture the building collaboration to achieve the objectives. Illustrative case studies are demonstrated to assess the proposed model’s effect on building communities consisting of residential and commercial buildings. The results show the efficiency of the proposed model in reducing the total energy cost as well as increasing the participants’ satisfaction. The findings also reveal that we can shave the peak demand by 53% and have a smooth aggregate load profile in a large-scale building community containing 500 residential and commercial buildings.