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Flexible Manufacturing and Demand Response for Smart Grid Coordination David Mendoza-Serrano and Donald J. Chmielewski Department of Chemical and Biological Engineering Illinois Institute of Technology Chicago, IL P 1 P 2 P 3 P 4 Utility Plant S 1 S 2 S 3 S 4 S 5

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Page 1: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Flexible Manufacturing and Demand Response for Smart Grid Coordination

David Mendoza-Serrano and Donald J. Chmielewski

Department of Chemical and Biological EngineeringIllinois Institute of Technology

Chicago, IL

P1

P2

P3

P4

Utility Plant

S1

S2

S3

S4S5

Page 2: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Outline

• Introduction to Smart Grid

• Modeling of a Flexible Chemical Plant

- Material Flow Manipulations

- Flexible Utilities (Steam and Electricity)

- Material Storage

• Smart Grid Operation and Revenue

Page 3: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

DispatchableGeneration

Consumer DemandTransmission

Energy Storage

Renewable Generation Smart Homes

SmartBuildings Smart

Manufacturing

Overview of the Smart Grid

Page 4: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Real-time Pricing for Electricity

Historic data from the PJM Western Hub, Day-Ahead prices: June 1, 2001 through June 20, 2001, http://www.pjm.com/markets-and-operations/energy/day-ahead/day-ahead-historical.aspx

Page 5: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Real-time Pricing for Electricity

Historic data from the PJM Western Hub, Day-Ahead prices: June 1, 2001 through June 20, 2001, http://www.pjm.com/markets-and-operations/energy/day-ahead/day-ahead-historical.aspx

Page 6: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

DispatchableGeneration

Consumer DemandTransmission

Energy Storage

Renewable Generation Smart Homes

SmartBuildings Smart

Manufacturing

Overview of the Smart Grid

Page 7: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

IGCC

Gasification Unit

PGPower Block

vH2,G

vcoal

vH2

Page 8: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

IGCC with Dispatch Capability

Gasification Unit

PG

Storage Tank

Power Block

vH2,S

vH2,G

vcoal

vH2

Page 9: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Economic MPC for IGCC Dispatch

Page 10: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Smart Buildings and Thermal Energy Storage

Page 11: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Economic MPC for TEC Coordination

Page 12: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

DispatchableGeneration

Consumer DemandTransmission

Energy Storage

Renewable Generation Smart Homes

SmartBuildings Smart

Manufacturing

Objective

Page 13: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Outline

• Introduction to Smart Grid

• Modeling of a Flexible Chemical Plant

- Material Flow Manipulations

- Flexible Utilities (Steam and Electricity)

- Material Storage

• Smart Grid Operation and Revenue

Page 14: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

P1

P2

P3

P4

Toy Example

Page 15: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Material Balances at Process Units

1214

1213

9811

9810

57

56

214

213

9.01.0

2.07.08.03.0

417.0583.0

1.075.09.025.0

νννν

νννννν

νννν

νννννν

==

+=+=

==

+=+=

P1

P2

P3

P4

Page 16: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Material Flow Manipulations

⎥⎥⎥⎥⎥⎥⎥⎥⎥⎥⎥

⎢⎢⎢⎢⎢⎢⎢⎢⎢⎢⎢

=

16

15

12

9

8

5

2

1

νννννννν

mP1

P2

P3

P4

mΔ=ν⇒

Page 17: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Material Balances at Streams

P1

P2

P3

P4

214

151211

1697

84

53

00000

νννννννν

νννν

−=−−=−−=

−=−=

Page 18: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Material Balances at Streams

P1

P2

P3

P4

214

151211

1697

84

53

00000

νννννννν

νννν

−=−−=−−=

−=−=

mΔ=ν+ mΛΔ=0⇒

Page 19: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Material Flow Constraints

P1

P2

P3

P4

max412

max398

max25

max121

uu

uu

≤≤+

≤≤+

ννν

ννν0≥ν

,

,

Page 20: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

P1

P2

P3

P4

Utility Plant

Process Utilities

Page 21: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

P1

P2

P3

P4

Utility Plant

Energy Requirements of Process Units

124

983

52

211

45.05.0

5.05.05.0

ννν

ννν

=+=

=+=

eeee

Page 22: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

P1

P2

P3

P4

Utility Plant

Energy Requirements of Process Units

124

983

52

211

45.05.0

5.05.05.0

ννν

ννν

=+=

=+=

eeee

⇒ νΓ=e

Page 23: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

P1

P2

P3

P4

Utility Plant

Steam Utilities

Page 24: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Possible Electric Utilities

Page 25: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

If energy is steam, conversion efficiency assumed ηs = 0.75

If energy is electric, conversion efficiency assume ηe = 0.95

In vector form,

where

Energy Conversion Efficiency

eess eee Θ+Θ=

Iss η=Θ Iee η=Θ

,

Page 26: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Energy Balance at Utilities

Steam Plant Steam Bank

Electric Node

sps1

s2s3

s4

e1e2e3

e4

g

Page 27: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Possible Co-Generation Plant

Steam Plant Steam Bank

Electric Node

Co-Generation Plant

sp

cog

s1s2s3

s4

e1e2e3

e4

g

Page 28: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Energy Balance at Steam Bank

Steam Plant Steam Bank

Electric Node

Co-Generation Plant

fsp

fcog

es1es2es3

es4

ee1ee2ee3

ee4

eg

scogcogsspsp eff 1=+ηη 75.0=spη

50.0=cogsη

T

⎥⎥⎥⎥

⎢⎢⎢⎢

=

1111

1

Page 29: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Energy Balance at Electric Node

Steam Plant Steam Bank

Electric Node

Co-Generation Plant

fsp

fcog

es1es2es3

es4

ee1ee2ee3

ee4

eg

ecogcogeg efe 1=+η

50.0=cogsη

T

⎥⎥⎥⎥

⎢⎢⎢⎢

=

1111

1

15.0=cogeη

Page 30: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Process Economics

P1

P2

P3

P4

,

,

Steam Plant Steam Bank

Electric Node

Co-Generation Plant

fsp

fcog

es1es2es3

es4

ee1ee2ee3

ee4

eg

[ν1 ν6 ν10 ν13 ν15 ν16] [-100 200 120 35 50 100]($/bbl)

ννc⇓

gecogfspf ecfcfc −−−

[fsp fcog eg] [ 3 3 5.5]($/MMBTU)

Page 31: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Process Optimization (RTO)

{ }

max412

max398

max25

max121

,0,0,0,0

,0,0

0 s.t.

max

uu

uu

efeeffeemm

ecfcfcc

ecogcogegscogcogsspsp

eess

gecogfspf

eff

eem

g

cogspes

≤≤+

≤≤+

=+=+Θ+Θ=ΓΔΛ=Δ=

−−−

≥≥≥≥≥≥

ννν

ννν

ηηηνν

ννν

11

Page 32: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Baseline Solution

then5.5 If =ec

****sec/3.26$ gecogfspf ecfcfcc −−−= νν

fsp* = 7.21 GJ/sec, fcog

* = 0 eg

* = 0

Page 33: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Baseline Solution

then5.5 If =ec

****sec/3.26$ gecogfspf ecfcfcc −−−= νν

sec/48$* =ννc

fsp* = 7.21 GJ/sec, fcog

* = 0 eg

* = 0

Page 34: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Real-time Pricing for Electricity

Page 35: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Real-time Pricing for Electricity

Page 36: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Operation with Real-time Pricing

Page 37: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Revenue with Real-time Pricing

Average profit found to be

$32.3/sec

22.8% increase wrt baseline

$26.3/sec

Page 38: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

P1

P2

P3

P4

Utility Plant

S1

S2

S3

S4S5

Impact of Material Storage

Page 39: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Material Balances at Streams

214

151211

1697

84

53

00000

νννννννν

νννν

−=−−=−−=

−=−=

mΛΔ=0mΔ=ν+ ⇒

Page 40: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Material Balances with Storage

2145

1512114

16973

842

531

νν

ννν

ννν

νν

νν

−=

−−=

−−=

−=

−=

M

M

M

M

M

&

&

&

&

&

mΔ=ν+ mM ΛΔ=&⇒

P1

P2

P3

P4

S1

S2

S3

S4S5

max)(0 MtM ≤≤

Page 41: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Process Optimization (RTO)

{ }

max412

max398

max25

max121

,0,0,0,0

,0,0

0 s.t.

max

uu

uu

efeeffeemm

ecfcfcc

ecogcogegscogcogsspsp

eess

gecogfspf

eff

eem

g

cogspes

≤≤+

≤≤+

=+=+Θ+Θ=ΓΔΛ=Δ=

−−−

≥≥≥≥≥≥

ννν

ννν

ηηηνν

ννν

11

Page 42: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Process Optimization with Storage

{ }

max

max412

max398

max25

max121

,0,0,0,0

,0,0

0

s.t.

max

MM

uu

uu

efeeffeemMm

ecfcfcc

ecogcogegscogcogsspsp

eess

gecogfspf

eff

eem

g

cogspes

≤≤

≤≤+

≤≤+

=+=+Θ+Θ=ΓΔΛ=Δ=

−−−

≥≥≥≥≥≥

ννν

ννν

ηηηνν

ννν

11

&

Page 43: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Economic MPC

max

max412

max398

max25

max121

0,,0,0

,0,0,0,0

0

s.t.

)]()()()()([1max

MM

uu

uu

efeeffeemMm

dttetctfctfctcT

ecogcogegscogcogsspsp

eess

Tt

tgecogfspf

Meff

eem

g

cogspes

≤≤

≤≤+

≤≤+

=+=+Θ+Θ=ΓΔΛ=Δ=

⎪⎭

⎪⎬⎫

⎪⎩

⎪⎨⎧

−−−∫+

≥≥≥

≥≥≥≥

ννν

ννν

ηηηνν

ννν

11

&

Page 44: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Literature on EMPC

• Conceptual Development and Stability Issues: Rawlings and Amrit (2009); Diehl, et al. (2011); Huang and Biegler (2011); Heidarinejad, et al. (2012)

• Process Scheduling: Karwana and Keblisb (2007); Baumrucker and Biegler (2010); Lima et al. (2011); Kostina et al. (2011)

• Power Systems: Zavala et al. (2009); Xie and Ilić (2009), Hovgaard, et al. (2011), Omell and Chmielewski (2011)

• HVAC Systems: Braun (1992); Morris et al. (1994); Kintner-Meyer and Emery (1995); Henze et al. (2003); Braun (2007); Oldewurtel et al. (2010), Ma et al. (2012); Mendoza and Chmielewski (2012)

Page 45: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Revisit Example with 2 Storage Units

P1

P2

P3

P4

S4S5

Page 46: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Operation with Real-time Pricingand Storage

P1

P2

P3

P4

S4S5

Page 47: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Operation with Real-time Pricingand Storage

Page 48: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Revenue with Real-time Pricingand Storage

EMPC average profit $34.2/sec

A 30% increase wrt baseline$26/sec

A 7.2% increase wrt RTO$32.3/sec

Page 49: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Conclusions

• Numerous Options for Smart Grid Flexibility in Chemical Plants

• For the given example profit increased by - 22.6 % with electric utilities and co-generation - 30.0 % if storage also included

• Operation Can Get Complicated Very Fast!!!!

• Next Question is Capital Cost of Equipment Upgrades

Page 50: Flexible Manufacturing and Demand Response for Smart Grid ...mypages.iit.edu/~chmielewski/presentations/2012/Smart_Manuf_20… · Flexible Manufacturing and Demand Response for Smart

Department of Chemical and Biological Engineering

Illinois Institute of Technology

Acknowledgements

• Current and Former Students:Ben OmellDavid Mendoza-Serrano Ming-Wei Yang (Taiwan Electric)

• Personal Communications Don BartusiakJeff Siirola

• Funding:National Science Foundation (CBET – 0967906)