Summary The industrial sector is one of the major energy consumers that contribute to global climate change. Demand response programs and on‐site renewable energy provide great opportunities for the industrial sector to both go green and lower production costs. In this paper, a 2‐stage stochastic flow shop scheduling problem is proposed to minimize the total electricity purchase cost. The energy demand of the designed manufacturing system is met by on‐site renewables, energy storage, as well as the supply from the power grid. The volatile price, such as day‐ahead and real‐time pricing, applies to the portion supplied by the power grid. The first stage of the formulated model determines optimal job schedules and minimizes day‐ahead purchase commitment cost that considers forecasted renewable generation. The volatility of the real‐time electricity price and the variability of renewable generation are considered in the second stage of the model to compensate for errors of the forecasted renewable supply; the model will also minimize the total cost of real‐time electricity supplied by the real‐time pricing market and maximize the total profit of renewable fed into the grid. Case study results show that cost savings because of on‐site renewables are significant. Seasonal cost saving differences are also observed. The cost saving in summer is higher than that in winter with solar and wind supply in the system. Although the battery system also contributes to the cost saving, its effect is not as significant as the renewables.

Summary Plug‐in electric vehicle (PEV) owners may have multiple different electric tariffs offered by their local utility companies from which to choose. The offered PEV tariffs are designed mainly to shift the electric demand for charging cars to the time when the grid is less strained. This paper investigates both the economic and the environmental impacts of adopting dedicated PEV electric tariffs from the PEV owners' perspective. The overall conclusion is that the dedicated tariffs are well designed for PEVs from the economical perspective but not from the environmental perspective. Case studies of the cost minimization model show that on average the dedicated PEV tariffs will result in approximately half the cost of the electric bill and slightly lower greenhouse gas (GHG) emissions (less than 1%) compared with the standard flat‐rate residential tariffs. Case studies of the emission minimization model show that the GHG emissions can be reduced by 10.47% as compared with the cost minimization model, but this will lead to an increase in the total charging cost that can be as high as 15.44% on average.