HOTEL ENERGY MANAGEMENT USING DEMAND BIDDING PROGRAM AND ITS APPLICATION

Demand bidding program (DBP) is one type of demand response. DBP attracts large energy consumers to participate and encourages them to reduce their energy use by setting their own target. The customer is free to choose a bidding value in terms of the amount of energy reduction. If the actual amount of energy saving conforms to certain requirement, the customer will be rewarded. For DBP, optimization problem is formulated with the objective of maximizing expected reward, which is received when the amount of energy saving satisfies the contract. For a general distribution of energy consumption, we give a general condition for the optimal bid and outline an algorithm to find the solution without numerical integration. Furthermore, for Gaussian distribution, we derive closed-form expressions of the optimal bid and the corresponding expected reward. Regarding hotel energy, we characterize loads in the hotel and introduce several energy consumption models that capture major energy use. With the proposed models and DBP, simulation results show that DBP provides economics benefits to the hotel and encourages load scheduling. Furthermore, when only mean and variance of energy consumption are known, the validity of Gaussian approximation for computing optimal load and expected reward is also discussed.