Enterprise-wide optimization for industrial demand side management: Fundamentals, advances, and perspectives

Qi Zhang, Ignacio E. Grossmann

Research output: Contribution to journalArticlepeer-review

109 Scopus citations


The active management of electricity demand, also referred to as demand side management (DSM), has been recognized as an effective approach to improving power grid performance and consumer benefits. Being large electricity consumers, the power-intensive process industries play a key role in DSM. In particular, enterprise-wide optimization (EWO) for industrial DSM has emerged as a major area of interest for both researchers and practitioners. In this work, we introduce the reader to the fundamentals of power system economics, provide a definition of DSM that reflects more strongly the consumer's perspective, and present a comprehensive review of existing works on EWO for industrial DSM. The review is organized into four parts, which correspond to the four main challenges that we identify as: (1) accurate modeling of operational flexibility, (2) integration of production and energy management, (3) decision-making across multiple time and space scales, and (4) optimization under uncertainty. Finally, we highlight research gaps and future opportunities in this area.

Original languageEnglish (US)
Pages (from-to)114-131
Number of pages18
JournalChemical Engineering Research and Design
StatePublished - Dec 1 2016
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2016 Institution of Chemical Engineers


  • Demand side management
  • Electricity markets
  • Enterprise-wide optimization


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