Industrial Load Management in Smart Grid Paradigm: A Review

Muhammad Ehjaz, Muhammad Naeem, Muhammad Iqbal

COMSATS Institute of Information Technology, Wah Cantt, Pakistan

Abstract
Industrial units are considered as large consumers of electricity with a share of about 40% of world energy consump-
tion. Industrial load management (ILM) had many features which differentiates it from residential load management
(RLM) such as batch processing, load dependency, sequential operations and raw material requirements. In industries,
energy management also involves material flow management between various industrial units which helps to optimize
final product and raw material requirements and maximizes revenue. In smart grid (SG) paradigm, various pricing
schemes are developed for industrial consumers such as peak pricing (PP), critical peak pricing (CPP), inclining block
rates (IBR), time of use (TOU) and day-ahead pricing (DAP) which enhances the scope of ILM. In this paper, a com-
prehensive review of ILM is presented considering various optimization objectives, such as maximization of profit,
efficiency, minimization of various costs and carbon emission. The constraints of ILM are categorizes as electrical
constraints, process constraints and material flow constraints to cover different aspects of energy management in in-
dustries. The modeling of industrial units is included in the research, to develop the understanding of operations
in industrial sector. Finally, application of industrial load management programs on various industries is presented
considering benefits, barriers and shortcomings in optimization modeling, techniques, and algorithms.
Keywords: Industrial load management, Smart Grid, Renewable energy resources, Industrial modeling

1. Introduction

Most energy management techniques and programs are implemented for residential and commercial loads [1, 2,
3, 4, 5, 6, 7, 8, 9, 10, 11], but less research work is focusing industrial load management (ILM). About 40 percent
of world energy is consumed by industrial sector [12], so it is very important to estimate and develop strategies for
energy saving in industries. An industry is collection of multiple units with different energy consumption pattern of
each unit. To estimate energy pattern of whole industry, it is mandatory to understand and model energy consumption
for every unit. Industries can be classified into manufacturing and non-manufacturing units based on their products.
Some examples of manufacturing industries are steel industry, chemical and oil refineries, and for non-manufacturing
industry, construction, agriculture and mining etc.
A very common feature of ILM, which differentiates it from residential load management (RLM), is sequential op-
eration of units in an industry. There exists a sequence of operation, on the raw material to develop final product.
Another important consideration for industries is batch cycles which has no existence in RLM. An industrial process
completes in number of batch cycles and length of cycles may differ from one another. Energy utilization of indus-
trial unit also depends on the material inside it for processing. Unit may operate on full capacity and half capacity,
and more material fed in full capacity mode which forces the unit to consume more energy. Another design factor
for ILM is material flow between the units and material storage after processing at any unit. The input material to
a unit must be equal to material at output and some wastage, which is known as material balance across the units.
In ILM, there are some constraints on material flow, final product and by product which can not be considered in RLM.

Different industries are considered for ILM in literature shown in Figure 5. Cement industry is one of the major
industrial loads where cost of electricity is 30 percent of total cost [13]. The units which consume about 70 percent
of total electrical energy, are cement mill, kiln and cooler and raw mill. Energy management for steel industry is
considered in [14, 15, 16, 17, 18, 19]. The process of steel making from raw material is mathematically modeled and

Preprint submitted to Elsevier June 15, 2021

 Table 1: Summery of existing reviews on load management

Ref. No. Load Objectives Constraints Industrial Domestic DSM DR Tariff Modeling
Man- Case of Units
agement Study
[21] X X X X
[22] X X
[23] X X
[24] X X X X
[25] X X
[26] X X X X
[27] X X X X
[28] X X
[29] X X X
[30] X X X

significant increase is observed by applying ILM program. Another very important industry from load management
point of view is oil refinery discussed in [12] and [20]. In oil refineries, different products such as gasoline, butane,
fuel oil and propane are produced from crude oil.

In smart grid paradigm, different pricing schemes are used to motivate the customer for peak clipping and valley
filling through scheduling their loads. Time-of-Use (TOU) is widely used to motivate the consumers to change their
utilization pattern for minimum electricity price. To reduce the peak demand of specific region, peak pricing (PP) is
used. In PP, peak charges are indicted based on weekly or monthly peak demand of consumer. Similarly, in critical
peak pricing (CPP), additional charges are added during peak demand hours from utility aspects. In CPP, peak load
is maximum collective load of any region. The price of electricity released by utility for coming day is known as
day-a-head pricing (DAP). In DAP consumer is aware of electricity price for the next day for each hour and can de-
cide his load pattern for that day in advance. Another very effective pricing scheme is inclining block rates (IBR) to
implement balanced load strategy. A threshold is set for demand and rate increases as demand crosses threshold [31].

A number of review papers have been published on energy management considering different aspects of domestic
and industrial loads. In [21] authors are discussing different management programs for demand side management
(DSM) implemented in California, Texas, Alberta, and New York for domestic energy users. Another research arti-
cle published in 2010, presenting a brief review of residential and domestic load identification methods and energy
utilization of different loads [22]. Energy management for Non-intrusive load is discussed in [23] and load manage-
ment based on real time pricing (RTP) for HEMS considering EVs is presented in [24]. Domestic load control is
classified as direct and indirect load control in [25] using TOU, RTP and CPP pricing schemes. Energy management
for industries is discussed in [26] with classification of loads considering TOU and power factor correction (PFC)
but industrial application, its objectives and constraints are not included in discussion. In [27], a review of energy
efficiency by using smart metering, DSM, peak reduction and demand response strategies was presented by authors
for domestic loads. The usefulness of smart meters [SM] for industrial sector in Pakistan focusing energy efficiency
and conservation is discussed in [28]. The authors present a brief review of SM features but none of the industry was
selected for case study. In the context of energy management, a review of DSM based methodologies and policies
and domestic energy management through consumers was presented in [29]. A brief review of energy management
in manufacturing unit is presented in [30] considering strategic paradigms, drivers and barriers, process paradigms,

2
 Figure 1: Generic Optimization Problem in ILM

communication technologies and manufacturing performances. It can be observed from Table-1 that objectives, con-
straints and modeling of industrial units are not discussed in any review article and case studies are not considered in
most papers. The uniqueness of this paper is addressing all the missing elements discussed above.
The goal of this paper is to present different aspects of industrial load management considering objectives, constraints,
and case studies. The modeling and formulation based on operating modes of different industrial unit in various indus-
tries is discussed briefly. In Fig.1, a generic model of ILM is shown, indicting various inputs, objectives, constraints
and possible combination of output. Energy saving and cost reduction by applying optimization techniques is com-
pared and concluded in following sections. The paper is structured as follows. The optimization objectives for ILM
in research literature are discussed in Section 2. In the next section, Section 3, different ILM constraints are discussed
briefly. Various industrial applications are described in Section 4. Next, Section 5 concludes the findings of research
on ILM and future scope of the topic is discussed.

2. ILM Objectives
In industrial load management (ILM), the objectives of optimization problems can be classified in four major
categories, as shown in Fig.2, and discussed in the following subsections.

2.1. Cost Minimization

The most important objective, discussed in many research papers is cost optimization. Total cost in ILM includes
cost of raw material, fuel cost for DGs, daily operational cost, maintenance cost, cost of electricity, and some fixes
cost depending on nature of industry and working environment. In [32] and [33], the authors are considering the
objective of cost minimization in floor mill and electrolytic industry, and it can be observed from results that cost is
reduced by 29% and 9% respectively. In above mentioned articles, the problem is formulated mathematically but the
process flow is not presented which must indicate the operational nature of different units in industry.

2.2. Profit Maximization

In [12] and [31], physical modeling of industrial units is presented to enhance the knowledge of operational be-
haviour of units in oil refinery and steel industry respectively with the objective of profit maximization by scheduling
different units in industry. From the results, it can be concluded that in [12], cost is reduced by 14% and an increase in
profit is observed by 10% in [31]. Use of renewable energy and energy storage is considered in [31] but not modeled
properly considering their different aspects.

3
 Figure 2: Objectives in Industrial Load Management

2.3. Emission Minimization

Another important objective of energy management is to reduce GHG emission. In [34, 35, 36] the objective
of emission control os considered and techniques are presented to achieve the objective but industrial loads are not
considered. In [37, 38, 39], use of renewable energy sources (RES) is discussed to minimize the effects of GHG and
utilization of fossil fuels. It is observed from above mentioned articles that a significant amount of green house gases
is reduced by efficient utilization of RES in domestic sector. The need of the hour is to enhance the RES for industrial
sector, as it is the major source of GHG emission.

2.4. System efficiency and reliability maximization

Efficiency is a very important objective for ILM in smart grid, which depends on system reliability and energy
utilization. Reliability is the basic requirement of power system which can be accessed from DSM, RES, protection
system and operation of different components in power system . Power system efficiency can be increased by min-
imizing power losses in transmission and distribution system. In [40], authors are discussing various aspects of SG
considering power quality, reliability, distributed generation, power generation from RES and self healing. The chal-
lenges and impact of various smart grid resources on grid reliability is discussed in [41]. In [42], a model is developed
to discuss reliability of neighbourhood area network (NAN) for communication system in smart grid. The reliability
of power system in bad weather conditions is managed through scheduling in [43].

4
(Max. R= Maximize Revenue, Max. Rel.=Maximize Reliability, Max. P= Maximize Profit, Max. EE=Maximize
Energy Efficiency, Min. E=Minimize Emission, Min. EC=Minimize Electricity Cost, Min. FC=Minimize Fuel Cost,
Min. OC= Minimize Operating Cost)

Figure 3: Relation between ILM Objectives

2.5. Remarks
A detailed discussion presenting various objectives related to industrial process and energy management, were
discussed in above sections. In ILM, the optimization objectives may support or conflict one another based on physical
and parametric differences in behaviours, as shown in Fig.3. Some ILM objectives such as, reliability of power system,
protection in fault conditions, fault section estimation, and facility load management in SG were not addressed in
detail. None of these ILM programs are addressing power factor (PF) and reactive power, which is key consideration
as 90% of electrical load in industries is inductive.

3. ILM Constraints

A number of constraints related to ILM considered in research to model the industrial process mathematically and
solve through optimization techniques as shown in TABLE 2. Based on the nature of operation, constraints can be
classified into following categories.

5
 Table 2: Constraint Tables

Ref. No. L/S ES RES MS MB SO FP Uncertainty Operation Batch Cycle

Completion
[2] X X
[3] X X X
[4] X X
[5] X X X X
[7] X
[8] X X
[9] X X
[10] X X X
[11] X X
[12] X X X
[14] X X X
[15] X X X X
[16] X X X
[19] X X X X X
[31] X X X X X X X X X
[32] X X X X X
[44] X X
[45] X X X X
[46] X
[47] X X X X
[48] X X
[49] X X X
[50] X
[51] X X X
[52] X
[53] X X
[54] X X X X
[55] X X X
[33] X X X X
[56] X X X
[57] X X X X
(L/S= Load/ Supply, RES=Renewable Energy Sources, ES= Energy Storage, MS=Material Storage, MB=Material
Balance, SO=Sequential Operation, FP=Final Product)

3.1. Electrical Constraints

A number of research articles published considering multiple energy management constraints in domestic, com-
mercial and industrial sectors. In domestic and commercial systems, demand side management involves constraints
such as power balance, energy storage and renewable energy in [2, 3, 4, 5, 7, 8, 9, 10]. Power balance is considered as
total power generation in a system must be equal to the total power demand. Constraints on energy storage involves
the storage limits, state of charge and charging time constraints. Similarly, in ILM, constraints related to energy sup-
ply, energy demand, energy storage and RES are discussed and modeled in [12, 15, 16, 19, 31, 32, 45, 46, 47, 48,
49, 50, 51, 52, 53, 55, 56, 57] as shown in TABLE II. Renewable energy have the constraints related to investment,
availability, type (solar, wind etc.), covered area and interconnection with utility.

3.2. Material Constraints

During an industrial process, some materials required urgent operation and, in contrast, some materials can be
stored for specific time horizon, defines material storage constraint discussed in [19, 31, 32, 45, 47, 54, 56]. There
are limits on storing different material in space as well as time domain. In industrial units, it is required to check
the balance between input and output material from every unit, which is considered in cost and revenue estimation
6
 Figure 4: Simplified Industrial Model

of industry, is modeled as material balance constraint in [31, 32, 54]. The constraints related to final product, which
defines minimum limits of production for any industry, and process completion are modeled mathematically in [14,
15, 31, 32].

3.3. Operational Constraints

A type of industrial processing, named as batch process, is considered in [31, 54, 57] and different constraint such
as cycle start/stop, number of cycles and length of batch cycle constrained are modeled mathematically. Batch cycle
start/stop constraint ensures that before starting new batch cycle, previous should end. In some units, the operation
takes no. of cycles to complete its operation, therefore, it is compulsory to have the information about no. of cycles
for each unit. The length of batch cycle varies form unit to unit based on material and processing inside units. It is
also important to consider the time duration in which unit completes its one batch cycle. Some units in industry can
not operate simultaneously, therefore a constraint related to exclusive operation of units as required to handle such
units.

3.4. Shortcomings of ILM constraints

From the discussion in the above subsections, it can be observed that very less work is proposed for ILM based
on material flow, batch cycle considerations and efficient use of RES in industries. Similarly, constraints related to
availability of RES and their interconnection with grid should be included in ILM for better performance. Use of
renewable for facility loads and PF correction system can improve the efficiency and revenue of industry.

4. Modeling of Industrial Units

Industry is a complex combination of different units, with different operational and constructional features as
shown in Fig. 4. To prepare a comprehensive model, it is necessary to have information about inputs, outputs, mode
of operation, type of material and amount of waste in the form of material or energy [31]. Industrial units can be
modeled based on following features:

4.1. Operational modes

There are many operational modes of industrial units based on sequential operation, load and time dependency.
The operation of an interruptible unit can be paused for specific time and retrieved after completion of some other task.
On the other hand, un-interruptible units can complete their process in consecutive time slots [58, 59]. Time shift-able
devices can be scheduled according to desired objective for peak clipping and valley filling but, in industries, some
units cannot be shifted as their operation is specified with time horizon [60, 61].
7
 Figure 5: Applications of ILC

4.2. Batch cycles

A major difference between residential and industrial energy management is batch processing in industrial units.
The task may be completed in multiple and different length cycles in an industrial units [62, 63, 64, 65]. For example,
in Fig. 3, unit 1 takes two batch cycles to complete the process and unit 4 requires 3 cycles to finish the task. In a
similar way, the times slots for one batch cycle may differ for different units based on complexity of process. In ILM
context, the information related to batch cycles is considered very important.

4.3. Inputs and outputs for industrial units

All industrial units require energy and raw material for their operation and to provide output. Some units perform
operation on raw material and produce an output which fed to next unit which indicates load dependency and sequen-
tial operation of units in industry. In Fig. 3, unit-1 capture raw material m − 1 and after processing m − 2 fed to unit-2
and 4 which complete processing in 2 and 3 batch cycles respectively. The output of unit-2 is final product whereas
unit-4 produces waste and final product. This waste can be in the form of material or waste of energy.

4.4. Types of material

The materials in industries can be classified into two major categories based on their storage abilities. Non-storable
materials require urgent processing after task completion from unit. On the other hand, storable material can be stored
for definite time. In ILM, the scheduling for the units which process storable material, is simple but they constitute an
extra storage cost.

4.5. Remarks
Various units in industrial process perform different operations, and their working strategies and modes vary
based on operation. The behaviours normally considered in industrial units interruptible, time shiftable, sequential
operations and inter dependency are discussed in this section. Materials used for manufacturing process modeled as
storable and non storable and their processing requirements may differ in different units and industries.
8
 Figure 6: Electrical load in a typical Cement Industry

5. Applications of ILM

Industries are considered large consumers of electricity with applied automation for different processes including
metering, sensors and control infrastructures. In the presence of automation and instrumentation, load management
for industries seems easily applicable. In literature, the major industries considered for load management are cement,
steel industry and oil refineries as shown in Fig 5. Inside an industry, the loads can be divided as facility and production
loads. Facility loads are not the part of industrial process but important for lighting, cooling, heating and ventilation
purposes. On the other hand, production loads consist of motor, furnaces, and pumps etc, used during industrial
processes in industry. A detailed review of different industries is presented in the following:

5.1. Cement Industry

Load management in cement industry is very important as 30% of total production cost is cost of electricity as
discussed in [66, 67, 68, 69, 70]. The main units of cement plant are crushers, raw mill, kiln, clinker and cement mill,
with 35% of total energy consumption in grinding process. In Fig.6, electrical energy consumption in cement industry
is classified as production load and facility load, and power consumption by each unit is shown. Energy management
in cement industry is discussed in [66] considering power consumption in different units, which indicates that about
40% and 33% energy is consumed in clinker grinding process and raw grinding respectively. A schedule is developed
to reduce electricity cost considering operational behaviour, manpower availability and product demand.
The implementation of SGIE technology to improve energy efficiency in industries is discussed in [67] and applied
on cement industry. For implementation, the current status of industry is observed and found that total electricity
consumption is 114 KWH/ton with the major consumption of 46 KWH/t and 35 KWH/t in cement milling and clinker
operation respectively. Then the energy savings were estimated using mathematical model which indicates 7 KWH/t
savings in electrical energy with the share of 6% of total electrical energy consumption. Results represents a total
9
saving of 4.6% by implementing SGIE technology.
To increase the energy performance in cement industry, US Environmental Protection Authority (EPA) working to-
gether with cement producer develop some tools based on electricity consumption is discussed in [68]. In US, the 95
million metric tons of cement was produced during 2007 which produced 44.5 million metric tons of GHG emission.
The saving in electrical energy for each unit in cement industry was measured which shows significant potential of
EPS STAR program implementation.
In [69], the authors are investigating and modeling power consumption in different units of cement industry and pre-
senting the data in the form of motor lists used in different units. Power modeling performed in this paper indicates
that raw milling and finish grinding are consuming 50% of total electrical energy consumption of cement factory.
Another research work presented in [70] considering cost optimization and carbon reduction in cement industry. The
objective function for optimization problem is modeled mathematically and a schedule for the operation of different
units is prepared through simulation results. At the end, it is concluded that by applying energy management program,
the cost is reduced by 4.2% and a decrease of 4% is observed in carbon emission.

5.2. Steel Industry

Steel industry is another major consumer of electrical energy with the electrical load in Mega-Watts and cost opti-
mization based on load management is considered in [14, 15, 16, 17, 18]. In [31], a detailed and comprehensive model
of industrial load is presented and case study of steel industry is analyzed. The detail of many industrial loads based on
their operational modes (sequential, dependency, batch operation) are considered and modeled mathematically. Dif-
ferent pricing strategies, used in smart grid are discussed and their models are developed in this paper. The objective
of research in this study was to maximize the profit of industry by decreasing overall cost. Cost includes raw material
cost, electricity cost, fixed cost and material storage cost. The units of industry have some operational properties such
as interruptible/ un-interruptible, controllable/uncontrollable and shift able/non-shift able. There are many constraints
including batch cycle constraint (starting, end and operational), exclusive operation of units, interruptible units, batch
cycle length, material timing constraints (input and output), material balance, material storage constraint, electrical
energy consumption constraints and battery charging and discharging rate constraints. The formulated optimization
problem is MILP and can be solved using CPLEX. The case study of steel industry is modeled and simulation are
performed. Quantity of raw material required is provided and min. and max. quantity of final product is also available.
The maximum electrical load is given as 5X105 kWh and load control program run for 48 hours. The simulations are
performed based on 5 different pricing schemes DAP, TOU, PP, IBR, and CPP. From the simulation results, it can be
observed that total energy consumption using DAP and CPP is 6.76 GWh and 5.54 GWh respectively. By applying
load control, an increase in profit under each pricing scheme is observed. An increase of 45% and 10% in profit is
obtained under IBR and TOU respectively. In figure 6, the pattern of energy consumption in steel industry is shown
which indicated energy requirements for various operations. It can be observed that blast furnace is the major load in
steel plant which consumes about 39% of total energy.

5.3. Oil Refinery

In [12, 20], oil refineries are considered for load management and improving the efficiency of refinery industry.
Industrial load control (ILC) is considered in [12] and problem formulation is developed based on the case study
of oil refinery, as oil refineries purchased 46,195 MWh of electricity in US during 2011. The authors discussed the
operation of oil refinery and its units briefly and represented through graph theory. Optimization problem for cost
minimization is mathematically modeled with sequential, operation completion, un-interruptible units, immediate
start and maximum demand constraints. Through mathematical modeling, it is observed that formulated problem is
binary integer problem and can be solved by CPLEX or MOSEK. BP refinery in Kwinana is selected for case study
with the maximum load of 300kWh. The simulations were performed for 100 different pricing scenarios with 20
time slots in scheduling horizon. It is observed that, on average, cost of electricity is decreased by 14% by applying
ILC program. Similarly, by increasing time slots in decision horizon, more reduction in cost is observed due to more
flexibility in time. The tariff used for pricing schemes was DAP (Day Ahead Pricing).

10
 Figure 7: Energy consumption in Steel Industry

5.4. Electrolytic Industries

The one of the most complicated industries to schedule for energy management is electrolytic industry because
of its process complexities. The authors are presenting the effects of load control program are observed in elec-
trolytic industry in [33]. The authors develop a mathematical model with the objective to minimize cost of electrical
energy subjected to production, maximum demand and storage constraint. The developed optimization problem is
MINLP problem. A case study of caustic chlorine plant in India is considered with the connected load of 40MW and
contract demand of 25MVA. Average consumption of electrical energy is 400MWh/day and specific consumption is
2600KWh/t. The plant operation is continuous with production capacity of 150 t/day. About 90% of load is accounted
by rectifier, which is used to fed DC current. The problem, with 1495 constraints and 970 variables, is solved through
Hyper LINGO using three different tariffs 1 two demand ) energy differential, 3 demand flat and energy differential.
It is observed from results that operating under tariff-1, an annual saving of 3.97% (15.93 million rupees) is achieved
with the 19.3% reduction in peak load. Under tariff-2, an annual saving of 9% (54.48 Million Rupees) is observed,
which is much more as compared to tariff-1. The tariff used there for electricity pricing is tariff-2. By applying tarrif-3,
the optimal scheduling results Rs. 0.15 million and reduction in peak demand is observed as 18%.

5.5. Textile and Leather Industry

Load management in textile and leather industry discussed in [28], and optimization problem is modeled and
solved using intelligent algorithms. Textile industry is one of the major industries in Pakistan which has a share
of 8.5% in GDP. Different units in textile industry, which consume electrical energy, are sizing section, weaving
section, wrapping, compressors, and colony loads. In textile, about 24% energy is consumed in the weaving process,
4in knitting and 32% in other process (such as dying, drying, spinning etc.). Total load of textile industry can vary
based on various parameters and design factors. Loads can be classified as shiftable and non-shiftable, for example
sizing and wrapping are shiftable loads and, in contrast, looming and compressors are non-shiftable loads. The
objective of optimization problems is to minimize cost of electricity subjected to constraints, such as peak clipping,
valley filling, continuous and discrete operations. Optimization technique used to solve the problem is binary integer
linear programming which schedules shiftable units to achieve objective. The results indicates that load management
program increases the efficiency of industry by minimizing cost and GHG emissions.

11
 Table 3: Industrial Applications of Load Management

Ref. No. Industry Processes

[14, 15, 16, 17, 18, 31] Steel Industry Electric Furnace, crushing, oxygen generation
[66, 67, 68, 69, 70] Cement Industry Grinding, raw mixing, crushing, clinker grinding
[12, 20] Oil Refinery Processing on Crude oil, catalytic cracking
[33] Electrolytic Industry smelting, electrolysis
[71] Food Industry Cooling, baking, defrost, refrigeration, distribution,
production
[72] Wood and Paper Refining, cutting
[73, 74] Aluminium production Heating, electrolysis, smelting
[28] Textile and leather Industry Weaving, Wrapping, Packing
[28, 75] Glass Industry Electric Furnace, oxygen generation
[72] Chloride production electrolysis

5.6. food Industry

Another most important and energy intensive industry considered in literature, is food industry, discussed in [71?
]. A number of processes such as baking, cooling, defrosting, refrigeration, production and distribution are taking
place in food industry, which consumes electricity, and by scheduling these processes, ILM can be implemented and
significant saving in cost can be achieved. In [? ], the authors are presenting top-down and bottom-up approaches
to manage electrical energy in food industry. In top-down approach, models are developed for monthly electricity
consumption and thermodynamic loading, and results indicate that chillers consume 8.3% of total power consumption.
In bottom-up approach, base load consumption based on electrical and thermodynamic loads is computed, which
indicates that compressors consume 7.5% of total electricity consumption. At the end, a saving of 166 MWH, 80
MWH, 338MWH, and 150 MWH in compressors, HVAC, condensers, and dryer respectively, is observed by applying
ILM based on top-down approach in food industry.

5.7. Wood and Paper Industry

The processes in paper industry results various final products such as paper and cardboard etc. Raw material used
for paper production is normally pulp, which consists of fibers extracted from wood chemically or mechanically. The
scope of ILM lies in pulp production process, which is called refining, a high energy intensive process. The unit, called
refiner, can be scheduled to minimize electricity cost, as it has the properties of shiftable loads, but there are some
constraints related to sequential operation. Normally, utilization factor of refiners is about 80% but minor variations
can be expected. Wood pulp is a storable material, therefore ILM can be implemented to enhance the efficiency of
industry. In various paper industries, the storage volume is about 1.5 h, which can store 468 MWh during process at
full capacity. By applying DSM in refiners, a saving potential of 250 MW is observed in [72].

5.8. Aluminium Industry

Electrolysis is a highly energy intensive process in aluminium (AL) industry, in which aluminium oxide is sepa-
rated into Al and oxygen. The energy requirement, for proper temperature and electrolysis, is about 15 MWH/ton of
Al. The utilization factor in AL industry is ranges form 95 to 98% because of the electrolytic process. Due to such an
important and excessive use, load shedding may occur in industry if load management is not applied. In [73, 74], the
imparlance of energy management in AL industry is discussed and observed that energy consumption in electrolysis
can be reduced up to 25% in four hours, which is equal to 277 MW.

12
5.9. Glass Industry
In glass industry, the main units are arc furnace and oxygen generation plant, which are considered as large
consumers of electrical energy [28, 75]. The case study, based on oxygen generation, is presented in [75], considering
energy generation system (EGS) and energy storage system (ESS). The optimization problem is modeled as mixed
integer linear programming (MILP) problem and solved using CPLEX. Case study consist of 4 oxygen generation
systems (OGS) and 3 water cooling systems (WCS) with different capacities and electricity demands. The objective
is to minimize electricity cost of facility considering constraints related to material balance, material storage, energy
generation, energy storage and power balance. Renewable systems such as wind, solar etc. are considered as EGS
and model based on day-a-head generation is developed. The storage capacity for ESS is about 6000 KWH with
charging/discharging rate of 1500 KWH. Simulation results indicates different electricity prices as 10594.6$, 10028$
and 8695$ for without EGS and ESS, with EGS and with EGS and ESS.

5.10. Remarks
In this section, a detail review of ILM for industrial applications is presented and processes in various industries
are summarized in TABLE 3. A number of industries discussed and it is observed that following parameters need
attention from research community to enhance the effectiveness of ILM.
1. A sophisticated model for industry is required which should cover all practical aspects of industry. Some models
are available in literature but very limited industrial features are considered.
2. The modeling of batch processing is another important feature of industrial units which should be considered
to improve the efficiency of ILM.

3. The effective utilization of RES is an important consideration of smart grid paradigm and can enhance the
effectiveness of ILM in great extend.

6. Conclusion

Industrial load management is traditionally adopted by various industries in the world but their performance is not
appreciable. The existing ILM programs are laking in different operational aspects such as missing parameters in units
modeling and optimization problem design. Industrial customers are not motivated to develop energy management
schemes, which can enhances their revenue as well as profit and causes of global warming can be mitigated. This
paper presents a comprehensive overview of following items.
1. A comparison of existing reviews on energy management is shown in TABLE I. A generic form of optimization
problem for ILM is presented considering all possible inputs, objectives, constraints and possible outputs.
2. A detailed analysis of various optimization objectives, which are considered essential for ILM, is presented in
this research. The results of different ILM programs, while applied on industries, are discussed. The relationship
between various objectives, such as supporting, conflicting and neutral, is discussed in previous sections.
3. Different constraints considered in literature for ILM are tabulated, which shows that very less research work
is proposed for operational constraints of industrial units. Operational constraints include material balance,
material flow and storage, and constraints related to batch cycles.
4. A generic model for industrial units is presented in this paper to develop basic understanding of various types
of industrial operations and, material and energy flow.
5. Industrial applications of ILM are discussed considering the benefits/drawbacks of optimization techniques for
energy management in industries. The detailed analysis of cement industry is presented by investigating power
consumption in each unit and process. Similarly, share of each unit in power consumption for steel industry is
also presented.

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Based on the all above discussion, it can be concluded that, although, industrial load management is adopted in many
countries, but still a lot of work is required to implement various industrial features in energy management. Following
features can enhance the scope and benefits of ILM for industrial sector.
1. Efficient utilization of renewable energy resources is considered a very important feature of SG, which should
be included in ILM.
2. In industrial sector, the load management should be implemented based on production process.
3. Introduction of smart metering and control technology development for industrial sector of Pakistan.
4. Compensation of reactive power due to highly inductive loads in industries.

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