Efficient Utilization of Industrial Power: Demand Side Management Approach

Abstract

Insufficient electricity generation in Nigeria has been a major constraint to economic, technological and industrial development. This work presents the use of demand side management (DSM) as a tool to efficiently manage the inadequate electric power generated. The functionality of DMS involves optimizing the overall system load factor for reduction in peak demand and electricity bill of energy users. The study adopted mathematical algorithm to optimize system load factor, minimizing the peak load demand and energy cost of consumers of electricity. The peak load reduction was possible by shifting some loads from peak load period to off load period within operation hours. Using the available energy distribution profile of a Bottling Company in Nigeria as a case study, the Microsoft excel solver optimization tool was applied to respectively improve load factor, reducing energy cost and peak load demand of the company by 7.45%, 4.18% and 8.44% annually, considering a 24-hour company operation.