The dispatch algorithm is responsible for deciding in each time step on how the electrical load is served by the available electric generation sources. As shown on the second axis, HOMER Grid will strategically discharge batteries to lower the monthly demand charge. One of the objectives of the HOMER Grid control strategy is optimizing the demand limit in every month to achieve maximum reduction in demand charges. HOMER Grid varies the demand limit on a monthly basis. In the above graph, observe that the green lines (grid purchases) do not exceed the black line (demand limit). The demand limit is an artificial limit that restricts the maximum allowable grid purchase. Observe the graph below: (Electric load = red Grid purchases = green demand limit = black State of Charge = orange) To reduce demand charges, HOMER Grid will try to limit the peak power purchased during each month. Peak shaving or demand charge reduction aims to reduce a customer's electricity bill by reducing these demand charges. Demand charges are the utility’s way of discouraging sudden spikes in demand. Demand charge is the cost ($/kW) of demand. Energy charge is the cost ($/kWh) of consumption. Grid charges can be categorized into energy charges, demand charges and fixed charges.
#Limit curtailment in homer energy how to
The HOMER Grid dispatch strategy makes decisions in each time step that determine how to use the system's components for demand charge reduction and energy arbitrage while serving the electric load.
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