Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy

dc.contributor.advisorNyirenda, Juwa
dc.contributor.authorWoodley, Tiffany Deanne
dc.date.accessioned2023-02-21T13:43:36Z
dc.date.available2023-02-21T13:43:36Z
dc.date.issued2022
dc.date.updated2023-02-21T07:33:20Z
dc.description.abstractTransitioning from fossil fuel-based energy systems to renewable sources is a is a global environmental imperative. South Africa has a coal-based energy sector, and consumers could be incentivised to pursue renewable energy alternatives if these solutions were financially advantageous. In South Africa, commercial properties are billed per kWh and can incur an additional demand charge that often accounts for a substantial portion of the energy bill, depending on the load factor. This thesis investigates peak load shaving as a solution for commercial properties to reduce their cost of electricity while supporting the transition to a greener energy future. Of the methods proposed for peak load shaving, reinforcement learning holds the greatest promise. However, its application in practice has been limited due to the “curse of dimensionality”. To make reinforcement learning a feasible option for peak load shaving, this thesis introduces a novel approach that employs clustering the energy demand profile shapes and training separate learning agents to target specific demand shapes, thereby reducing the complexity of the problem presented to the individual agents. The reinforcement learning model was trained on historical data from a commercial shopping centre in Cape Town using a hypothetical battery. Two scenarios were considered; the first assumed the absence of solar in the energy system while the second assumed its presence. Once trained, the learning agents were tested on unfamiliar energy data from the same shopping centre, and they achieved practical peak load shaving results. In Scenario 1 when using only a battery, monthly demand was reduced by 91 kW on average. Introducing a solar system in Scenario 2 increases uncertainty in the problem. The results, only demonstrated on one cluster, show the battery most often achieved a 50 kW reduction per day. In both scenarios, a learning agent trained on particular clusters of demand profiles was able to reduce peak energy demand for all unfamiliar days. Furthermore, in Scenario 2, the agent's learning progression indicated that the agent was learning to increase the battery output during the predominant peak. This suggests that our method's efficacy would improve with increased training time. If implemented, this approach could provide a practical peak shaving solution for the commercial shopping centre in Cape Town, effectively lowering their energy demand charges. This thesis has shown that clustering techniques used in conjunction with reinforcement learning is a promising approach when considering the peak shaving problem.
dc.identifier.apacitationWoodley, T. D. (2022). <i>Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy</i>. (). ,Faculty of Science ,Department of Statistical Sciences. Retrieved from http://hdl.handle.net/11427/36942en_ZA
dc.identifier.chicagocitationWoodley, Tiffany Deanne. <i>"Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy."</i> ., ,Faculty of Science ,Department of Statistical Sciences, 2022. http://hdl.handle.net/11427/36942en_ZA
dc.identifier.citationWoodley, T.D. 2022. Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy. . ,Faculty of Science ,Department of Statistical Sciences. http://hdl.handle.net/11427/36942en_ZA
dc.identifier.ris TY - Master Thesis AU - Woodley, Tiffany Deanne AB - Transitioning from fossil fuel-based energy systems to renewable sources is a is a global environmental imperative. South Africa has a coal-based energy sector, and consumers could be incentivised to pursue renewable energy alternatives if these solutions were financially advantageous. In South Africa, commercial properties are billed per kWh and can incur an additional demand charge that often accounts for a substantial portion of the energy bill, depending on the load factor. This thesis investigates peak load shaving as a solution for commercial properties to reduce their cost of electricity while supporting the transition to a greener energy future. Of the methods proposed for peak load shaving, reinforcement learning holds the greatest promise. However, its application in practice has been limited due to the “curse of dimensionality”. To make reinforcement learning a feasible option for peak load shaving, this thesis introduces a novel approach that employs clustering the energy demand profile shapes and training separate learning agents to target specific demand shapes, thereby reducing the complexity of the problem presented to the individual agents. The reinforcement learning model was trained on historical data from a commercial shopping centre in Cape Town using a hypothetical battery. Two scenarios were considered; the first assumed the absence of solar in the energy system while the second assumed its presence. Once trained, the learning agents were tested on unfamiliar energy data from the same shopping centre, and they achieved practical peak load shaving results. In Scenario 1 when using only a battery, monthly demand was reduced by 91 kW on average. Introducing a solar system in Scenario 2 increases uncertainty in the problem. The results, only demonstrated on one cluster, show the battery most often achieved a 50 kW reduction per day. In both scenarios, a learning agent trained on particular clusters of demand profiles was able to reduce peak energy demand for all unfamiliar days. Furthermore, in Scenario 2, the agent's learning progression indicated that the agent was learning to increase the battery output during the predominant peak. This suggests that our method's efficacy would improve with increased training time. If implemented, this approach could provide a practical peak shaving solution for the commercial shopping centre in Cape Town, effectively lowering their energy demand charges. This thesis has shown that clustering techniques used in conjunction with reinforcement learning is a promising approach when considering the peak shaving problem. DA - 2022_ DB - OpenUCT DP - University of Cape Town KW - Advanced Analytics LK - https://open.uct.ac.za PY - 2022 T1 - Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy TI - Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy UR - http://hdl.handle.net/11427/36942 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/36942
dc.identifier.vancouvercitationWoodley TD. Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy. []. ,Faculty of Science ,Department of Statistical Sciences, 2022 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/36942en_ZA
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Statistical Sciences
dc.publisher.facultyFaculty of Science
dc.subjectAdvanced Analytics
dc.titleToward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMSc
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