Optimized demand side management versus new renewable generation as a means of replacing retiring rotational generation

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University of New Brunswick


Power systems must work continuously to match the generation and the load every second of every hour. Utilities sometimes act in the short term to vary the load for control purposes, and this is called Demand Response. To maintain the balance between supply and demand in the longer term several energy efficient activities, called Demand Side Management (DSM) strategies, are being adopted worldwide. These programs are implemented within the service area of any utility to promote reduced energy consumption especially during peak hours or emergencies and to smoothen the load profile. It improves the performance of the grid by changing the electricity consumption pattern, time of usage, and conditions of immediate demand. This study has analysed the possibility of Demand Side Management as an alternate replacement of retiring conventional rotational units compared with renewable generation. The study is based in the context of Barbados Light and Power Company’s service area. The scenario is such that the existing Heavy Fuel Oil (HFO) type rotational generators are being retired in the near future and there is a need to compensate for this loss of generation. This thesis compares optimized Demand Side Management opportunities or measures with renewable generation, especially central PV and wind, for the replacement of retiring conventional generating units. A linear optimization model has been developed to calculate the cheapest combination among the available DSM opportunities utilizing the software “What’s Best” Version 17, a product of LINDO. Additionally, a sensitivity analysis has been performed to analyse the possibility of DSM in focused end-use intervention. The cost comparison of DSM versus renewables shows the possibility of implementing DSM at a lower cost under many different generator replacement scenarios.