Smart grid coordination of a chemical processing plant

As the electric power grid evolves to a smart grid, the introduction of real-time price structures will provide consumers with the opportunity to obtain low cost (possibly negative cost) electrical energy. This work will propose a novel design for a utility plant within a chemical processing facility that will enable exploitation of the diurnal nature of expected electricity prices. Specifically, we will investigate an oil heating, gas fired furnace that has been augmented with an electric heater. A second configuration, that augments the electric heater with an energy storage unit, will also be investigated. Results indicate that substantial savings in energy cost can be achieved, but will likely be undercut by the capital costs associated with the electric heater.