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Potential Cost Benefit Of Electricity Load Shifting When Designing Upgrades To An Integrated Newsprint Mill

conomie potentielle du dplacement de la charge lectrique lors de l’optimisation d’une usine de papier journal intgre

conomie potentielle du dplacement de la charge lectrique lors de l’optimisation d’une usine de papier journal intgre

Abstract: This article describes the application of an operations- driven cost model for assessing the potential benefits of electricity load shifting in a TMP plant when designing upgrades to an inte- grated newsprint mill. The case study considered several retrofit design options for the upgrade of the mill by increasing deinked pulp (DIP) production and implementing cogeneration. Identify- ing the optimal load shifting profile resulted in an increase in the project NPV of $21 to $27 million depending on the alternative. Sensitivity results show that considering load shifting in the design process may in some cases alter the best design choice. This is more likely to occur at high average electricity prices and a large differ- ence between on-and off-peak electricity prices. Furthermore, applying load shifting when considering real-time prices reduces manufacturing costs with $2500/tonne when compared to the existing mill, at an extreme electricity price of $1045/MWh.

Paper presented at the 94th PAPTAC Annual Meeting in Mon- treal, February 5-7, 2008.

Keywords: RETROFIT PROCESS DESIGN, COST MODELING, ELECTRICITY LOAD SHIFTING, INTEGRATED NEWSPRINT MILL.

Full manuscript available at www.paptac.ca.