PreprintArticleVersion 1Preserved in Portico This version is not peer-reviewed
Stochastic Decision-Making Optimization Model for Large Electricity Self-Productors Using Natural Gas in Industrial Processes: An Approach Considering a Regret Cost Function
Version 1
: Received: 17 September 2024 / Approved: 18 September 2024 / Online: 19 September 2024 (08:38:42 CEST)
How to cite:
Leonel, L.; Balan, M.; Camargo, L. A.; Ramos, D.; Castro, R.; Clemente, F. Stochastic Decision-Making Optimization Model for Large Electricity Self-Productors Using Natural Gas in Industrial Processes: An Approach Considering a Regret Cost Function. Preprints2024, 2024091370. https://doi.org/10.20944/preprints202409.1370.v1
Leonel, L.; Balan, M.; Camargo, L. A.; Ramos, D.; Castro, R.; Clemente, F. Stochastic Decision-Making Optimization Model for Large Electricity Self-Productors Using Natural Gas in Industrial Processes: An Approach Considering a Regret Cost Function. Preprints 2024, 2024091370. https://doi.org/10.20944/preprints202409.1370.v1
Leonel, L.; Balan, M.; Camargo, L. A.; Ramos, D.; Castro, R.; Clemente, F. Stochastic Decision-Making Optimization Model for Large Electricity Self-Productors Using Natural Gas in Industrial Processes: An Approach Considering a Regret Cost Function. Preprints2024, 2024091370. https://doi.org/10.20944/preprints202409.1370.v1
APA Style
Leonel, L., Balan, M., Camargo, L. A., Ramos, D., Castro, R., & Clemente, F. (2024). Stochastic Decision-Making Optimization Model for Large Electricity Self-Productors Using Natural Gas in Industrial Processes: An Approach Considering a Regret Cost Function. Preprints. https://doi.org/10.20944/preprints202409.1370.v1
Chicago/Turabian Style
Leonel, L., Roberto Castro and Felipe Clemente. 2024 "Stochastic Decision-Making Optimization Model for Large Electricity Self-Productors Using Natural Gas in Industrial Processes: An Approach Considering a Regret Cost Function" Preprints. https://doi.org/10.20944/preprints202409.1370.v1
Abstract
In the context of high energy costs and energy transition, the optimal use of energy resources for industrial consumption is fundamental. This paper presents a decision-making structure for large consumers having flexibility to manage electricity or natural gas consume to satisfy the demands of industrial processes. The proposed modelling energy system structure relates monthly medium and hourly short-term decisions to which these agents are subjected, represented by two connected optimization models. In the medium term, the decision occurs under uncertain conditions of energy and natural-gas market prices, as well as hydropower generation (self-production). The monthly decision is represented by a risk-constrained optimization model. In the short term, hourly optimization considers the operational flexibility of energy and/or natural-gas consumption, subject to the strategy defined in the medium term and mathematically connected by a regret cost function. The model application of a real case of a Brazilian aluminum producer indicates a measured energy cost reduction of U$ 3.98 million over a six-month analysis period.
Keywords
Energy procurement; Load-supply flexibility; Integrated stochastic optimization model; regret cost
Subject
Engineering, Electrical and Electronic Engineering
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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