Quantifying the benefits to consumers for demand response with a statistical elasticity model

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Quantifying the benefits to consumers for demand response with a statistical elasticity model
Title:
Quantifying the benefits to consumers for demand response with a statistical elasticity model
Journal Title:
IET Generation, Transmission & Distribution
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Publication Date:
01 March 2014
Citation:
Abstract:
This study considers the benefits of real-time pricing (RTP), both to individual customers and to the society as a whole, in a deregulated hybrid electricity retail market where both RTP and traditional flat pricing programs coexist. The framework is based on a statistical elasticity model, where the optimal RTP is calculated to maximise social welfare. The customers are characterised by their input load profile shape and their activeness or extent of response in participating in the RTP program by rescheduling their load. With increasing penetration of the RTP scheme in the hybrid market, the economic effect of the dual price scheme on all parties involved is analysed. The indices compared include the actual load, peak-to-average ratio (PAR) of the actual load, utility, generation cost and social welfare. Actual load and unit price are compared among customers with different characteristics. Simulation on typical power systems demonstrates that base on the statistical elasticity model, RTP, as a price incentive, effectively rewards customers who provide flexibility in energy consumption.
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ISSN:
1751-8687
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