Successful Real Time Pricing (RTP) Tieline Control Must Do More Than Save Money

Abstract

Industrial cogeneration facilities are finding electrical procurement contracts with Real Time Pricing (RTP) clauses attractive. By accepting a portion of the variable energy cost risk, the industrial can reduce the average cost of electricity procurement. From the utility perspective, RTP pricing signals can shape load demand profiles by clipping demand peaks and filling valleys to reduce generation variability and cost. While this may be a Win-Win for both parties, it does increase the operating complexity of both systems.

A solution to this class of control problem has evolved over a twelve year period to address an increasing complex problem. Effective cogeneration management is required to ensure that byproduct electric power is produced as dictated by market, fuel, and header conditions while maintaining overall system reliability and stability. Discretionary loads such as condensers and vents must be coordinated to minimize total energy costs as the decision to self generate power changes. Facility operation is often left to a decreasing number of operators making an increasing number of decisions without adequate training or management oversight. This paper will examine several of these projects and their associated solutions. Some of these projects are known to return in excess of $500K/Year.