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Smart Solutions for Electric Power Management

Benjamin Shafer

CST 499 Online Computer Science Capstone

Dr. Eric Tao

Fall 2023
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Executive Summary

The proposed project, "Smart Solutions for Electric Power Management," aims to enable

The Wine Group, a large wine manufacturing business, to comprehensively analyze and optimize

their electricity usage, encompassing reductions in both overall and peak electricity consumption

through data-driven insights and energy-efficient solutions. Leveraging machine learning

algorithms, the project seeks to provide actionable recommendations for cost reduction, energy

efficiency improvement, and peak demand management, ultimately empowering the organization

to make informed decisions regarding their power consumption.

Its purpose is to address the challenges and costs associated with escalating electricity

demands, recognizing environmental consequences and the finite supply of electricity by utility

companies. The project's comprehensive solution emphasizes specific cost-related concerns, such

as demand charges and time-of-use rates, with the potential to reduce strain on the grid during

peak demand periods, resulting in fewer rolling blackouts and enhanced reliability of electricity

supply.

Anticipated outcomes include cost savings for The Wine Group, potential benefits for

utility companies through reduced infrastructure wear and cost savings, and the promotion of

energy efficiency and renewable energy adoption for broader environmental sustainability. In

conclusion, the project holds promise for stakeholders while effectively addressing the growing

issue of rising electricity demands and costs.

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Table of Contents

Introduction/Background......................................................................................................................4
Project name and description................................................................................................................ 4
Problem and/or issue in technology.......................................................................................................4
Solution to the problem and/or issue in technology..............................................................................5
Environmental Scan/Literature Review................................................................................................. 5
Stakeholders.........................................................................................................................................6
Ethical Considerations............................................................................................................................ 7
Legal Considerations.............................................................................................................................. 7
Project Goals and Objectives:....................................................................................................8
Goals....................................................................................................................................... 8
Objectives................................................................................................................................ 8
Final Deliverables........................................................................................................................ 9
Approach/Methodology.............................................................................................................10
Timeline/Resources...................................................................................................................10
Timeline and Milestones........................................................................................................ 10
Resources Needed................................................................................................................ 11
Platform...................................................................................................................................... 11
Risks and Dependencies.......................................................................................................... 12
Risks...................................................................................................................................... 12
Dependencies........................................................................................................................12
Testing Plan................................................................................................................................13
References..........................................................................................................................................14
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Introduction/Background

Project name and description

Smart Solutions for Electric Power Management is an application that can be used by The

Wine Group to analyze their electricity usage and explore possible solutions to reduce their

overall and peak electricity consumption. The Wine Group is a large wine manufacturing

business with several locations throughout central California. At one of their locations, a typical

electric bill will usually cost them anywhere from $100,000 to $200,000. The application will

use machine learning algorithms to analyze their historical power usage which will then be used

by the company to develop solutions for reducing their electric expenses, and finding new ways

to be more energy efficient.

Problem and/or issue in technology

This project will address the pressing issue of escalating electricity demands and the

associated rising costs faced by many businesses. This challenge stems from the nation's ongoing

development, which has led to a consistent increase in total electricity consumption. The

detrimental environmental consequences of expanding electricity production, coupled with the

finite supply of electricity by utility companies, underscore the urgency of this project.

Furthermore, during extreme weather events such as intense heat waves and cold waves, the

demand for electricity can exceed supply capabilities, resulting in rolling blackouts. These issues

not only inconvenience residential homes but also pose a significant risk to critical industries

such as hospitals. To tackle these problems, the project aims to address specific cost-related

concerns, including demand charges and time-of-use rates, highlighting the clear necessity for a

comprehensive solution to balance growing electricity needs and costs effectively.

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Solution to the problem and/or issue in technology

To address the issue of escalating electricity demands and costs, Smart Solutions for

Electric Power Management will provide tools for developing and exploring potential solutions,

leveraging machine learning to analyze historical usage data and provide actionable insights. It

will tackle the challenge of reducing peak demand consumption by implementing an intelligent

load control system that optimizes the runtime of high-consumption systems, reallocating them

to non-peak periods where possible. Additionally, it will promote the adoption of alternative

power sources like solar and battery storage to supplement utility power during high-demand

periods. To reduce overall consumption, the application will help users identify and isolate areas

of high power usage and facilitate the generation and storage of renewable energy, such as solar

power. This comprehensive technology solution will empower users to make informed decisions

and proactively address the growing electricity demand and associated costs.

Environmental Scan/Literature Review

There are many existing software applications offering solutions in the field of power

management. One notable project is VOLTTRON, which is an open-source, transaction

coordination platform funded by the Department of Energy and developed by the Pacific

Northwest National Laboratory. As described by Kim et al, (2020), VOLTTRON serves as a

versatile platform for collecting data from diverse devices and provides the necessary framework

and tools for data interaction. It can be employed to deploy intelligent load control systems that

effectively manage and shape building electricity consumption, thereby ensuring that demand

usage does not exceed defined thresholds. This approach has been demonstrated to yield cost
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savings, offering a practical solution for optimizing electricity consumption (2020). However, it

is worth noting that VOLTTRON does not incorporate machine learning into its operations.

Additionally, there are many other options in the form of proprietary software designed

for power management solutions. These solutions offer potential benefits but are often associated

with high costs, which makes it difficult to compare this project with and can also deter

organizations from exploring their capabilities thoroughly. As a result, the accessibility and

cost-effectiveness of solutions like VOLTTRON make them attractive alternatives for

organizations seeking efficient ways to manage electricity demand and reduce operational

expenses.

Stakeholders

The stakeholders in this project encompass several groups, each with their own potential

gains and losses. The company initiating the project stands to benefit significantly by discovering

new solutions that could substantially reduce their utility expenses, potentially leading to

increased profitability. Company employees could also reap rewards through bonuses or income

raises if cost savings are substantial, and new positions created for implementing and

maintaining energy solutions could provide additional job opportunities.

On the other hand, the utility company may lose some revenue due to reduced electricity

consumption, but it could also benefit from reduced wear on its infrastructure and associated cost

savings. Moreover, other customers of the utility company, including residential and commercial

entities, stand to gain from this project as it could lead to less strain on the grid during peak

demand periods, resulting in fewer rolling blackouts and enhanced reliability of electricity
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supply. Overall, the project has the potential to bring positive outcomes for various stakeholders

while addressing the pressing issue of rising electricity demands and costs.

Ethical Considerations

One ethical consideration that can affect all of the stakeholders is based on the solutions

of using alternate power sources like batteries and solar panels which raises questions about the

long-term environmental impact and sustainability of these technologies. While they offer

cleaner energy solutions, it's essential to ensure their production and disposal do not contribute to

other environmental problems. Additionally, there are concerns about potential unfavorable

working conditions stemming from efforts to save on energy costs, such as making employees

work overnight to avoid on-peak charges. This raises ethical concerns related to employee

well-being, work-life balance, and fair compensation. Balancing the ethical dimensions of

environmental responsibility and employee welfare will be vital in ensuring a positive impact on

all stakeholders involved in the project.

Legal Considerations

There are several legal considerations that come into play with the development of this

project. One legal consideration has to do with the licenses of any libraries or other software

components used in the development of the application ensuring compliance with their

respective terms and conditions. Additionally, if the project uses data from the company's

databases, copyright laws and regulations can have an effect. Moreover, it is crucial to

communicate clearly that the solutions explored within the program are suggestions and

estimates, not to be regarded as 100% accurate or as a factual basis for any legal processes or
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documentation, including compliance with electrical, building, or fire codes. Professionals in the

relevant fields should be consulted when making any decisions with legal implications to ensure

full compliance with applicable laws and regulations.

Project Goals and Objectives:

Goals Identify possible cost-saving strategies Provide a tool to easily explore and
to reduce expenses associated with analyze previous, current, and
electricity consumption. future electricity-usage trends.

Objectives Explore and develop strategies for Aggregate the data sources on
reducing the demand charge. electricity usage into one database.

Explore and develop strategies for Use data to determine which

reducing the consumption charge. machine-learning algorithms to use
for electricity-usage predictions.

Develop a dashboard for exploring the Develop a dashboard for displaying

possible strategies. electricity-usage trends.
Figure 1. Project goals and objectives table.

Goals

As seen in figure 1, there are two primary goals this project sets out to accomplish. The

first goal is to identify possible cost-saving strategies to reduce expenses associated with

electricity consumption. The primary focus of accomplishing this goal will be on finding

solutions to reduce both the demand and consumption charges. The second goal is to provide a

tool to easily explore and analyze previous, current, and future electricity-usage trends. This tool

will be a program that provides a web interface for users to view and explore these trends.
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Objectives

The objectives to meet the first goal include finding strategies aimed at minimizing both

the demand and consumption charges. For reducing the demand charge, strategies involve the

exploration of using alternative power sources. such as solar, batteries, or diesel generators, to

offset the peak usages. This will involve carefully weighing the costs of the alternative power

sources with the demand charge for the current peak usage in order to find the most optimal

usage. Another possible solution could also be determining methods to lower the peak usage by

shifting electricity-intensive activities to off-peak hours

For the second goal, the objectives focus on gathering, analyzing, and displaying

electricity-usage data in a user-friendly manner. A dashboard is to be designed and implemented

for the purpose of visualizing and presenting electricity-usage trends effectively. Furthermore,

the data will be leveraged to identify suitable machine-learning algorithms for accurate

predictions of electricity consumption, thereby enabling data-driven decision-making in energy

management.

Final Deliverables

The final deliverables consist of two key components. The first component is a program

equipped with a user-friendly web interface that facilitates the display of a dashboard for the

in-depth exploration and analysis of electricity-usage trends. The second component includes a

set of tools designed to aid in the exploration and development of strategies aimed at reducing

expenses related to electricity consumption.

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Approach/Methodology

The project will employ an Agile approach for its adaptability, which enables the

exploration of cost-saving energy solutions. It consists of three primary phases. Phase one tasks

include aggregating the electricity-usage data and any other pertinent data into one database,

preprocessing the data, and analyzing the data to look for any patterns and correlations. Phase

two tasks include researching possible energy-saving solutions, running some preliminary tests

to determine the feasibility of the solutions, and then implementing some of the solutions. Lastly,

in phase three, tasks include designing the user interface for exploring the data and solutions,

developing a web interface to display the electricity-usage trends and solutions, and then

integrating everything together.. This structured approach ensures a comprehensive and flexible

energy management solution.

Timeline/Resources

Figure 2. Project Timeline and Milestones.

Timeline and Milestones

The project timeline spans six weeks and is divided into distinct phases. In the first week,

data gathering involves the collection and preprocessing of electricity-usage data and relevant
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information. The second week focuses on data analysis using Jupyter Notebook. Week three is

dedicated to exploring potential solutions, researching them, and assessing their feasibility.

During the fourth week, solutions for reducing electricity expenses are developed and

implemented. Week five sees the design of a user interface (UI) and the development of a web

interface. Finally, in the sixth week, all project components are integrated and thoroughly tested

to ensure a cohesive and functional solution. The milestones are met at the completion of each of

the three phases.

Resources Needed

Resources used for the project development include a desktop or laptop computer with

Python 3.10 or later for developing and running the program, MySQL Workbench to interact

with the data, and an IDE for developing Python and Jupyter Notebooks. Resources needed to

run the program will be a desktop or laptop with Python 3.10 and either a local instance of

MySQL with the database on the computer or a network connection with a server running

MySQL with the database.

Platform

The project is built upon a platform of four main components. MySQL is chosen for the

database due to its alignment with the company's existing data infrastructure, facilitating

seamless integration. Jupyter Notebooks and Python are employed for efficient exploration and

implementation of machine-learning algorithms essential for energy-saving solutions. A

prototyping tool is utilized to swiftly experiment with various user interface designs. Lastly,

PivotalTracker serves as a project management tool, aiding in development process tracking and
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feature management. This combination of platforms serves as a simple yet effective foundation

for the development of the project.

Risks and Dependencies

Risks

There are two identifiable risks that may affect the on-time completion of the project.The

first is the possibility that the energy-saving solutions may lack adequate evidence to be

considered realistic enough solutions for them to be integrated into the final program. This would

put the second phase of the project at risk if no solutions are found and thus failing one of the

main goals for the project. The second risk has to do with the risks involved with time

management that could potentially impact the project's timely completion. The student developer

will have to properly manage their time between their academic and work commitments.

Dependencies

The successful completion of the project is dependent on two critical factors. The first

dependency takes place in the first phase. It is imperative to gather ample energy-usage data and

identify correlations, as machine learning algorithms rely on these patterns for effective

implementation. The second dependency has to do with completion of the second phase. The key

to success in the second phase lies in discovering energy-saving solutions that can be realistically

implemented using the collected energy-usage data. These two dependencies are critical for the

project's completion.
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Testing Plan

Since the project’s development process is based on Agile, testing will be done

throughout all phases of the project's development. In the first phase, testing will focus on

confirming the completeness and usability of energy-usage data during the data preprocessing

stage. During the second phase, extensive testing will involve evaluating various energy-saving

solutions using test data, with expert verification of their correctness. Finally, in the third phase,

testing will take the form of user tasks, where users are asked to complete specific actions and

provide feedback on the design.

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References

Kim, W., Katipamula, S., & Lutes, R. (2020). Application of intelligent load control to manage

building loads to support rapid growth of distributed renewable generation. Sustainable

Cities and Society, 53, 101898. https://doi.org/10.1016/j.scs.2019.101898