(67b) Smart Grid: Industry Meets the Smart Grid – Integrating Process Automation and Energy Management in Industrial Facilities

A smart grid opens new cost saving and revenue generating possibilities for process automation. The flexibility provided by integrated process automation and energy management helps manufacturers not only to save energy by using electricity more efficiently, but also to procure it under the best possible financial terms.  Demand response (DR) is one way of demand modification, i.e. the change in energy consumption pattern, in response to grid and electricity market conditions through voluntary market based mechanism.  In direct load control, demand modification is carried out by the grid operator directly, in demand response, the system operators achieve demand modification indirectly through price signals. The DR program participants carry out those instructions and provide demand response by turning down or turning off some equipment or processes. In automated demand response, the ISO or the utility manipulates demand directly, which is referred to as direct load control (DLC). This is an established technology for which optimization-based automation solutions already exist, and it is currently being used by many utilities, for example to turn off or cycle large appliances such as air conditioning systems and hot water heaters. Another important incentive comes from adapting the electricity load according to day-ahead pricing. In this case the production profile is determined by scheduling the production based on electricity price forecasts. This approach can create stability both on the utility and the manufacturing sites and therefore enable significant savings. The focus here is on similar capabilities for large consumers within the chemical process industries (CPI)