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

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 Afri...

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Main Author: Woodley, Tiffany Deanne
Other Authors: Nyirenda, Juwa
Format: Thesis
Language:English
Published: Department of Statistical Sciences 2023
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access_status_str Open Access
author Woodley, Tiffany Deanne
author2 Nyirenda, Juwa
author_browse Nyirenda, Juwa
Woodley, Tiffany Deanne
author_facet Nyirenda, Juwa
Woodley, Tiffany Deanne
author_sort Woodley, Tiffany Deanne
collection Thesis
description 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.
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institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:34:33.896Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2023
publishDateRange 2023
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publisher Department of Statistical Sciences
publisherStr Department of Statistical Sciences
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source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/36942 Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy Woodley, Tiffany Deanne Nyirenda, Juwa Advanced Analytics 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. 2023-02-21T13:43:36Z 2023-02-21T13:43:36Z 2022 2023-02-21T07:33:20Z Master Thesis Masters MSc http://hdl.handle.net/11427/36942 eng application/pdf Department of Statistical Sciences Faculty of Science
spellingShingle Advanced Analytics
Woodley, Tiffany Deanne
Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy
thesis_degree_str Master's
title Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy
title_full Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy
title_fullStr Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy
title_full_unstemmed Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy
title_short Toward a sustainable energy future: Peak load shaving in commercial properties to reduce cost of energy
title_sort toward a sustainable energy future peak load shaving in commercial properties to reduce cost of energy
topic Advanced Analytics
url http://hdl.handle.net/11427/36942
work_keys_str_mv AT woodleytiffanydeanne towardasustainableenergyfuturepeakloadshavingincommercialpropertiestoreducecostofenergy