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PLC-based Load Management in Steel Rolling Mills

Article  in  Energy Engineering: Journal of the Association of Energy Engineers · June 2010

DOI: 10.1080/01998595.2010.10012624

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38 Energy Engineering Vol. 107, No. 4 2010

PLC-based Load Management in

Steel Rolling Mills
Ashok S, Senior Member IEEE

ABSTRACT

This article presents a physically-based load model and formula-

tion for continuous process industries to use in implementing industrial
load management. The formulation utilizes an integer programming
technique for minimizing electricity costs by scheduling the loads and
satisfying the process, production, and maximum demand constraints.
The case study of a typical steel rolling mill, with the proposed model,
shows that savings of about 5.21% in electricity costs are possible with
optimal load scheduling under TOU tariff. After scheduling the loads,
real time implementation of load management action is investigated
using a programmable logic controller.

Keywords: Load management actions, load flow control, steel mill, time-
of-use tariff (TOU)

INTRODUCTION

Demand for electricity has increased with the advancement of

technology and living standards. Most of the electric utilities throughout
the world are facing difficulties in meeting the increasing demand from
different consumer sectors, at all times. For example, the power system
of India is experiencing an energy shortage of 9%, with a peak demand
deficit of about 15.2% [1]. As the demand is widely varying, the utility
must run generation units that are sufficiently rated to meet the demand.
Especially during peak periods, the utility has to increase generation
capacity and operate costly peak-generating units. Initiatives are usually
introduced by the utilities to smooth the system load curve and thus
delay (or avoid) the installation of extra capacity. Typically, customers
 39

are made aware of this either by means of price signal or through load
shedding.
Electricity costs can be minimized by taking advantage of incen-
tives and favorable pricing offered by utilities in order to encourage
consumers to use energy in such a way and at suitable times so as to
enable the utility to manage load patterns. By making the best use of
these incentives, it is possible to achieve significant savings in produc-
tion costs, with no adverse effect on product quality and productivity.
The set of options available for load management in industry in-
cludes process rescheduling or load shifting, machinery interruption/
restart cycle, energy storage, captive power, and automation. The choice
of each option must be weighed against the rate system or financial
agreement in effect and the technological constraints posed by the pro-
duction process.
The industrial sector consumes about 41% of the total electrical
energy generated on a worldwide basis [2]. Since industries consume
a significant proportion of the total electrical energy generated, load
management in the industrial sector assumes an important role in peak
demand management. Load shifting, one of the simplest methods of load
management, is to reduce customer demand during the peak period by
shifting the use of appliances and equipment to partial-peak and off-
peak periods. No loads are switched off but only shifted or rescheduled;
hence, the total production is not affected [3].
Load management (LM) is a specific method of controlling the
peak load in the network in order to produce a constant demand. For
applying LM techniques to the industrial sector, a detailed modeling and
optimization of the industrial loads is needed, including the complexi-
ties and constraints of the process. Industrial load management (ILM)
activities are aimed at the economic reduction of an electric utility’s
demand during peak hours without affecting the specified production.
ILM applications have been reported for utilities using interruptible load
control schemes [4].
For iron and steel industries, electricity comprises about 30% of to-
tal production costs. A mathematical model formulation coupled with an
optimization framework for optimal process schedule of the steel plant,
for a specified tariff, minimizing the total operating cost and satisfying
production, process flow, and storage constraints has been reported[5].
A methodology for collecting end-use demand data for devis-
ing demand-side management programs in the commercial sector has
40 Energy Engineering Vol. 107, No. 4 2010

been reported [6]. As the model developed is aimed at peak-demand

reduction of commercial sector sites like hotels and does not cover the
intricacies of industrial loads, it is inadequate for ILM applications. A
methodology developed to achieve peak utility load reduction in batch
processes of an industrial brewery has been reported [7]. However, the
optimization model which was developed for batch process, cannot
be directly applied to continuous process industries. An optimization
formulation using mixed integer programming for load side demand
control has been reported [8]. As it does not include storage and process
constraints, it cannot be directly applied to process industries. A general
approach to solve the optimal contracting capacity for a petrochemical
plant with an in-house cogeneration system has been discussed [9].
A methodology utilizing one- and two-way management systems
for load control and distribution automation has been discussed [10]; it
is reported for the entire distribution system of a particular area. Many
methods of load scheduling during peak hours of operation have been
utilized for efficient use of generation during peak periods. Some com-
mercial customers in the load management program having refrigeration
units controlled by PLC are reported [11].
As a continuation of the physical models and methodologies
proposed in the literature, a load model with an optimization formula-
tion for load scheduling is proposed in this article. The model can be
applied to determine the optimal operating strategies for industries of
continuous-type processes. The formulation utilizes an integer linear
programming technique [16] and considers the process, production,
process sequence, and maximum demand constraints. Hence, it can
be extended to any type of continuous process industry, as the model
proposed is a generalized one. Real-time implementation methodology
is investigated in this article.

MATHEMATICAL MODEL

The formulation is based on discrete time representation for con-

tinuous process loads. For the planning horizon, one day is split into N
intervals with equal time durations of t hours.
The decision variable I indicates whether the equipment is either
ON or OFF in a particular interval.
The decision variable
 41

1, if m th equipment processing j th product in interval k

I mjk = )
0, otherwise (1)

Electric power input in kW to equipment m in any interval k when

it is processing jth product is

W mjk = "^ A m * U mjkh/ηmjk ,

(2)

where Am, is the rated capacity of the equipment in kW, Umjk, is the utili-
zation of the mth equipment in the interval k when it is processing the jth
product, and ηmjk is the efficiency of the equipment m in the interval k.
The energy consumed in kWh by the equipment m in the kth in-
terval when processing the product j is

N
E mjk = / W mjk * I mjk * t
k=1 (3)

The objective function minimizing the monthly operating cost is

N M J
e Min / / / 6 E mjk * C k @ * H + C d * MD o
k=1 m=1 j=1
(4)

Where,
Ck = Cost of energy (charge per kWh) for the interval
H = Number of working days in the month;
Cd = MD charge (charge/kVA/month),
M = Particular item of equipment;
J = Total number of products

Production constraint to keep the total production Qj of a product

j in the planning horizon is

N
/ Pmjk * I mjk ≥ Q j, 6 m = M
k=1 (5)

where Pmjk is production (discharge) in quantity for the machine m for

the product j in kth interval.
42 Energy Engineering Vol. 107, No. 4 2010

Total production of the plant QT is

J
/ Q j ≥ QT
j=1 (6)

Availability of raw material for production is ensured by

J N
/ / R mjk * I mjk ≤ R T, 6m = 1
j=1 k=1 (7)

where Rmjk is the quantity of raw material required for the mth equip-
ment for the product j in the kth interval, and RT is the total raw-material
available for the day.
Maximum demand constraint to avoid penalty from a utility when
processing a product in any interval is ensured by

M
/ S mjk * I mjk ≤ MD k
m=1 8)

where Smjk is the demand due to mth machine when processing jth
product in kth interval, and MDk, is maximum demand imposed by the
utility to industry.
Until one product is completed, the same machine should not be
allocated to any other product in a particular interval. In order to prevent
allocation clashes, the following constraint is included.

J
/ I mjk = 1
j=1 (9)

Process sequence constraint in between machines is ensured for a

specified product in an interval by

I mjk ≤ I (m + 1)jk 6m > M.

(10)
 43

ALGORITHM

Steps in the load-shifting algorithm are as follows:

1. Read the load data at different time instants; contract maximum-

demand (CMD) or any preferred maximum-demand limit (PMD)
at TOU rates.
2. Calculate the maximum demand (MD) at each time instant and
cost of electricity for the day.
3. Shift the loads or group of loads to off–peak periods from peak
periods.
4. Check for constraints:
i. Process sequence constraint
ii. Allocation clash constraint (machine can process only one
process at a time)
iii. Maximum demand constraint
iv. Production constraint
v. Raw Material constraint, etc.
5. Do steps 3-4 for all possible loads and for all the time instants in
a repetitive manner such that ∑ (cost of electrical energy for the
day) is a minimum.

The above algorithm has to be implemented in any optimization

software package for the search of an optimized schedule; the flow chart
of the above algorithm is shown in Figure 1.

CASE STUDY

The industrial units are broadly divided into two categories,

namely “continuous process” plants and industrial “batch-type manu-
facturing” plants [12]. Rolling mills comes under the first class, where
the ingot rods are the raw material to the mill and the output is steel
rods with different diameters. The entire process will run continuously,
with full-time raw material feeding and continuous collection of the steel
rods at the output section.

Plant Description
The plant [13] has an installed capacity of producing 6000 MT of
44 Energy Engineering Vol. 107, No. 4 2010

steel bars in a month, oper-

ating in two shifts. Present
monthly average production
is 5000 MT (approximately
84% of installed capacity) with
different types of products,
the bars varying in diameters
of 8mm, 10mm, 12mm, 16mm,
20mm, and 25mm. The plant
has a contract demand of 1500
KVA, with daily energy con-
sumption of 15MWh. Specific
energy consumption varies,
depending on the products
processed. The average spe-
cific energy consumption of
the plant is 150kWh/MT.

Process Flow
Plant loads have the
nature of continuous process.
A process flow diagram of the
plant operation is shown in
Figure 2.

Major Plant Equipment

Mill loads mainly con-
sist of motors; the load on
these motors is calculated by
considering the utilization (U)
and efficiency of operation
(η). Small loads in the mills
are grouped as a single load.
Based on the observed uti-
lization of loads, efficiency
Figure 1. Flowchart
parameters are considered as
per the standard manufacturers’ characteristics. The major equipment
details provided below are generalized for all products, even those with
different rates of consumption in the actual case; also, the production
 45

Figure 2. Process Flow Diagram

rate specified is generalized for all, although there are actually differ-
ent production rates for different products. Specifications of the major
equipment are shown in Table 1.
46 Energy Engineering Vol. 107, No. 4 2010

Table 1. Major Equipment Details

———————————————————————————————
Load Am U E
In Got Pusher(L1) 22.2 .36 0.80
Blower(L2) 37 .54 0.80
Roller Tables(L3) 33.3 .53 0.80
Roller Mill 1(L4) 750 .70 0.80
End Cutters(L5) 25.9 .46 0.80
Roller Mill 2(L6) 600 .56 0.80
Roller Mill 3 (L7) 375 .26 0.80
Dc Drives(L8) 300 .80 0.80
Pinch Rolls (L9) 30 .53 0.80
Shear(L10) 110 .70 0.80
Tail Brake Drives(L11) 44 .63 0.80
Twin Channels(L12) 11 .80 0.80
Rake Drive(L13) 60 .73 0.80
Roller conveyor(L14) 14.8 .54 0.80
Align Motors 1(L15) 22 .54 0.80
Cold Shear(L16) 18.5 .64 0.80
Cooling Pumps (L17)* 381.3 .52 0.80
Mill Water Pumps(L18)* 51.8 .50 0.80
———————————————————————————————
*For L17 and L18 the load varies depending on product.
*Loading rate on each machine is 10 T/hr.

Production Requirement
For the case study, the production requirement for an average day
is about 180MT, consisting of all products (presently producing one
product daily), and the total monthly production is about 5000 MT,
including all the products. Plant monthly production of each product is
listed in Table 2 for typical monthly data.
After conducting the load management study, it is observed that
instead of producing one product for an entire day, industry can produce
many products on the same day, with the less energy-consuming prod-
ucts being processed in the peak hours such that the monthly electricity
bill is reduced.
It is observed that production can be scheduled in the following
manner for a typical month.
 47

21 days - 8mm, 20mm, 25mm

2 days - 10mm
2 days - 12mm
2 days - 16mm

The industry runs 27 days a month for production, leaving 3 days

for maintenance. The resulting monthly production is given in Table 2.
Here the production of the 8mm and 25mm is drastically increased; how-
ever, these products are in high market demand. The optimal product
scheduling for 8mm, 20mm, and 25mm products processed by critical
loads, like rolling mills and DC drives, is shown for a typical day in
Table 3.

Table 2. Production Details

——————————————————————————————
SECTION Production in MT Production in MT
(Before Scheduling) (After Scheduling)
——————————————————————————————
8 mm 2944.4 3035.34
10 mm 381.0 424.8
12 mm 421.0 428.64
16 mm 457.5 460.8
20 mm 90.0 115.85
25 mm 799.0 1161.93
Total 5092.9 5627.4
——————————————————————————————
*Data shown represent product number
*Products 1, 5, 6 are treated as 8mm, 20mm, and 25mm respectively.

Presently the plant is running under two shifts, due to utility re-
strictions. For the high tension industrial consumers, the utility (Kerala
State Electricity Board-KSEB) [14] follows a differential pricing system
for both energy and maximum demand, as given in Table 4. Tariff 1 is
the prevailing tariff for the industry.
The utility has already included the furnace loads in a power- in-
tensive group and will charge as per the power-intensive tariff (Tariff
2) in the future.
48 Energy Engineering Vol. 107, No. 4 2010

Table 3. Optimal Production Schedule for Typical Day

—————————————————————————————
Machines
L4 L6 L7 L8
Intervals
—————————————————————————————
1 1 1 1 1
4 1 1 1 1
8 1 1 1 1
12 1 1 1 1
16 1 1 1 1
20 1 1 1 1
24 1 1 1 1
30 6 6 6 6
32 1 1 1 1
34 6 6 6 6
41 5 5 5 5
45 1 1 1 1
—————————————————————————————
*Only selected loads and selected intervals are listed.

Table 4. Tariff rates for load management study

—————————————————————————————
Tariff MD Charge Energy charge Differential
Rs/KVA Rs/kWh rate
—————————————————————————————
Tariff 1 270 3.00 1:1.8:.75
—————————————————————————————
Tariff 2 270 3.00 1:3.6:.75
—————————————————————————————
*Energy differential rate: normal, peak, off-peak
*TOU Time partition: 6am-6pm: normal, 6pm-10pm: peak; 10pm-6am: off-peak

ILM RESPONSE OF INDUSTRY

The optimization model as per Eq. 4 is developed based on the

equipment and process data. The corresponding integer programming
[15] formulation consisting of 5184 decision variables and 6057 con-
straints is solved using Unlimited LINGO [16].
Results of load scheduling operation under two different energy
tariffs, Tariff 1 and Tariff 2, are shown in Table 5. It can be seen that
 49

under the prevailing tariff (Tariff 1), the load rescheduling or production
rescheduling will result in an annual saving of Rs.9.92 lacks (2.65 %) in
the electricity cost. The response to load scheduling operation under the
power-intensive tariff (Tariff 2) is more encouraging. Monthly electricity
cost gets reduced from Rs.38.94 lacks to Rs.37.01 lacks. It results in an
annual saving of Rs.23.16 lacks (5.21%).

Table 5. Comparison of Load scheduling under different tariffs

—————————————————————————————————
Description Existing Operation Load Scheduling Operation
————————————————————————
Tariff 1 Tariff 2 Tariff 1 Tariff 2
—————————————————————————————————
Peak Demand
MDpeak (KVA) 1500 1500 1500 1500
—————————————————————————————————
Electricity
Charge
(Rs.
Lacks./Month) 31.18 38.94 30.36 37.01
—————————————————————————————————
Annual Saving
(Rs. Lacks) — — 9.92 23.16
—————————————————————————————————
Annual Saving
(%) — — 2.65 5.21
—————————————————————————————————

After scheduling, the optimal response load curve is compared with the
existing 8mm load curve, shown in Figure 3.

Figure 3. Comparison
of load curve before
and after scheduling
with 8mm load
50 Energy Engineering Vol. 107, No. 4 2010

The above model can be directly applied to other power- intensive

continuous process industries with controllable loads. In some cases peak
demand reduction is also possible; in such cases if the process industries
reschedule their process according to the optimal schedules developed,
the utility can achieve a significant reduction in peak demand.

IMPLEMENTATION USING PLC

A PLC (programmable logic controller) is the most obvious choice

for the industrial control application. Eighteen machines need to be
controlled, so PLC is a viable option in the industrial environment. The
above savings can be achieved in real time by PLCs, and most of the
industries already have them for their processes to run smoothly. So it
is easy to implement industrial controls by using PLC; also, a graphical
user interface can be developed with less investment cost.
The optimized scheduling of the machines is obtained by solving
the industry model in Unlimited LINGO Optimization Software. LINGO
functionality can be used in any Microsoft Windows-based applications
by calling up the DLL file. The optimization model developed in LINGO
is interfaced with a graphical user interface (GUI) in Visual Basic. LINGO
Solver is used as a back-end solver for optimization of the problem.
The optimized results from LINGO are called to visual basic by
calling LINGO Dynamic Linked Library (DLL). Scheduling of the ma-
chines and products can be represented in GUI in proper format using
labels and a button in the visual basic. Changes of machine state are
represented by changing the color of labels; here a machine can be either
on or off.
In Visual Basic the change of color is transferred to any other
Microsoft Windows-based application by using dynamic data exchange
(DDE). This feature is used to generate control signals for machines
through a PLC. Allen Bradley PLC Programming Language supports
the DDE; the control signals generated from the LINGO are given to
PLC by activating an output coil in PLC. The corresponding output coil
can easily control the machine by connecting these control signals to a
relay and switching control panel of the machine. Control signals are
generated according to the optimized schedule. Control signals given to
PLC output coils are shown in Figure 4, where only three output coils
are shown.
 51

Figure 4. Control signals generated in PLC

This methodology is implemented in the Allen-Bradley SLC 5/03

Series C Programmable Logic Controller (PLC), using 18 output and
input coils. Here the main interlink communication between PLC and
the Visual Basic is through a Dynamic Data Exchange (DDE) server,
available in RSLinx Classic.

APPLICATIONS

This article represents a physically-based load model and formula-

tion that could be applied to any continuous process industry for imple-
menting industrial load management by a load shifting technique for
electricity cost minimization. The optimization results are represented
in GUI in proper format in Visual Basic, which provides a user friendly
interface in an industrial environment. In the increasingly automated
industrial sector, real time implementation of load management actions
by using Programmable Logic Controllers, which is investigated in this
article, is also very important.

CONCLUSION

An optimization formulation based on load models incorporating

equipment and constraints on process, production, raw materials, and
52 Energy Engineering Vol. 107, No. 4 2010

maximum demand has been developed for LM in continuous process

industries. The model represents continuous-type loads and is capable
of determining the industry response under different tariff structure.
Most of the industries in India are unaware of the potential of load
scheduling, with the time varying tariff structure, in minimizing their
electricity bill. The case study for a typical rolling mill shows that a re-
duction of total electricity cost is possible by optimal process scheduling.
The optimal schedule under the TOU tariff results in a 5.21% saving in
electricity bills as compared to present working conditions. Under TOU
tariff, an optimal load schedule can also result in peak savings.
The utility can achieve a significant peak demand reduction if
industries reschedule their process in response to the TOU tariff. The
optimization tool developed in this article facilitates this by helping in-
dustries to determine the optimal response, and proposed methodology
helps to implement load management actions in real time.
Investigative studies are conducted for the possibility of develop-
ing an industrial load management controller.

ACKNOWLEDGEMENTS

The authors would like to thank M/s Peekay Rolling Mills, Calicut,
for providing the plant data.

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————————————————————————————————
ABOUT THE AUTHOR
S. Ashok received M.Tech and Ph.D. degrees from the Indian In-
stitute of Technology (IIT) Delhi, New Delhi, India, and the IIT Bombay,
Mumbai, India, respectively. His research interests are peak demand
management, energy modeling, captive power, power system protection,
and hybrid energy systems. Dr. Ashok is a senior member of the IEEE
power engineering society.
He is an assistant professor at NIT Calicut.
Email: ashoks@nitc.ac.in

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