MILP MODEL FOR CONTRACTED DEMAND OPTIMIZATION FOR GROUP A CUSTOMERS

Vol 57, 2025 - 340676
Extended Abstracts (EA)
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Abstract

The article presents a mathematical model to optimize the contracted demand for electricity from Group A consumers, aiming to reduce costs. In Brazil, inadequate contracting can generate losses due to fines (undersizing) or payment of idle capacity (oversizing). A formulation based on Mixed Integer Linear Programming (MILP) was proposed to minimize costs considering tariffs, taxes and penalties. The model was tested with real data from six institutions, evaluating scenarios with a single annual contract and seasonal contracts. The results indicate cost reduction in all cases, including when small fines are economically viable, showing that the model is effective to support decision-making in energy management for group A customers.

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Institutions
  • 1 Instituto Federal de Educação, Ciência e Tecnologia de Minas Gerais - IFMG
  • 2 Universidade Federal de Viçosa
Track
  • EN&OG – OR in Energy, Oil and Gas
Keywords
Contracted Demand
Energy Management
Discrete Optimization