Peak Power Reduction for HVAC Operations in Multi-unit Commercial Buildings

The load profiles of most commercial consumers are characterized by brief periods of very high power consumption followed by intervals of relatively lower demand. In order to flatten commercial load profiles, several power utilities in addition to billing energy consumption, levy a demand charge (DC) on the monthly peak demand. In this work, we consider the problem of joint optimization of energy costs (EC) and DC incurred by a multi-unit building which follows a demand response (DR) program. Despite the non-linear structure of the problem, we show how the optimal solutions can be obtained efficiently using linear programming. We evaluate the performance of the proposed power control scheme for various climate zones in the US. We show that depending on the ambient conditions and the prescribed tariff structure, our strategy can result in savings of up to nearly 19% compared to the baseline.