Title
Minimizing pricing policies based on user load profiles and residential demand responses in smart grids
Author
Rasheed, M.B.
Rodriguez Moreno, M.D.
Publication year
2022
Abstract
This paper considers the time of use (TOU) pricing scheme to propose a consumer aware pricing policy (CAPP), where each customer receives a separate electricity pricing signal. These pricing signals are obtained based on individualized load demand patterns to optimally manage the flexible load demand. The main objective of CAPP is to reduce the peaks in overall system demand in such a way that the pricing signals remain non-discriminatory. To achieve this goal, firstly the mathematical model of CAPP comprising TOU electricity price, and its variation based on consumption patterns is formulated. Secondly, the proposed CAPP model is further extended by integrating renewable energy and storage sources to overcome the possible creation of rebound peaks due to scheduling. This objective is achieved by implementing a control variable modeling the upper bound of the low tariff area. Thirdly, the cost minimization optimization problem is solved by using a Genetic Algorithm (GA) with the objective of the fair price distribution. Numerical and simulation results are obtained to validate the proposed model in terms of convergence, optimality, and cost reduction objective function. Results reveal that each customer receives a separate electricity price signal based on his demand pattern without affecting the utility/retailer revenue. Furthermore, the total cost results are also compared with and without TOU & CAPP schemes to further validate the nondiscrimination in electricity price
Subject
Smart grid communication
Optimization
Energy management
Customized tariff
Supply side
Genetic Algorithm
To reference this document use:
http://resolver.tudelft.nl/uuid:7cd3057f-0455-4014-8bb5-23fbfe18e1e1
TNO identifier
966324
Source
Apllied Energy, 310 (310)
Document type
article