A SMP-Based Load Shifting Optimization Model for Voluntary Demand Response in Industrial Complexes

The rapid expansion of the high electricity-intensive industries like data center has led to a structural increase in industrial electricity demand, thereby increasing the need for demand response (DR) to enhance power system flexibility. However, in the industrial sector, DR strategies based solely on simple load curtailment can impose productivity losses on participating customers. To address this limitation, this study proposes an SMP-based load shifting linear programming (LP) optimization model that enables DR curtailment to translate into electricity cost reduction through clustered DR resources formed by combining load resources at the industrial complex level. The decision variables representing hourly load shifting are adjusted under constraints defined by the hourly average demand and flexibility of the load resources, and the averages and fluctuations of SMP. The objective function is optimized to minimize the total electricity cost. Since the demand flexibility varies by season, experiments are conducted about various clustered DR resources on a seasonal basis. When resources with similar hourly average demand and flexibility are combined, the resulting load shifting plans are found to yield the greatest electricity cost reduction (Scenario 2—0.79 M KRW). These results confirm that the proposed load shifting LP model can provide a practical approach for DR operation planning.