Price Discounts and Consumer Load-Shifting Behavior in the Smart Grid

2022 ◽  
pp. 1148-1169
Author(s):  
Eeyad Al-Ahmadi ◽  
Murat Erkoc
Keyword(s):  
Smart Grid ◽  
Finite Number ◽  
Electricity Market ◽  
Stackelberg Game ◽  
Electricity Consumption ◽  
Game Model ◽  
Peak Period ◽  
Load Shifting ◽  
Price Discounts ◽  
The Impact

This paper studies the impact of consumers' individual attitudes towards load shifting in electricity consumption in an electricity market that includes a single electricity provider and multiple consumers. A Stackelberg game model is formulated in which the provider uses price discounts over a finite number of periods in order to induce incentives for consumers to shift their peak period loads to off-peak periods. The equilibrium outcomes are investigated and the analytical results are derived for this type of market, where not only the response behaviors of independent consumers are diverse but also an individual consumer's valuation of electricity consumption varies across periods. The obtained results demonstrate that consumer sensitivities to price discounts significantly impact price discounts and load-shifts, which are not necessarily monotonic. The authors also observe that a diverse market leads to lower peak-to-average values and provider payoffs compared to a homogenous market unless the latter one is composed of consumers with relatively lower inconvenience costs during the peak periods.

Price Discounts and Consumer Load-Shifting Behavior in the Smart Grid

2018 ◽  
Vol 5 (1) ◽  
pp. 33-54 ◽  
Author(s):  
Eeyad Al-Ahmadi ◽  
Murat Erkoc
Keyword(s):  
Smart Grid ◽  
Finite Number ◽  
Electricity Market ◽  
Stackelberg Game ◽  
Electricity Consumption ◽  
Game Model ◽  
Peak Period ◽  
Load Shifting ◽  
Price Discounts ◽  
The Impact

This paper studies the impact of consumers' individual attitudes towards load shifting in electricity consumption in an electricity market that includes a single electricity provider and multiple consumers. A Stackelberg game model is formulated in which the provider uses price discounts over a finite number of periods in order to induce incentives for consumers to shift their peak period loads to off-peak periods. The equilibrium outcomes are investigated and the analytical results are derived for this type of market, where not only the response behaviors of independent consumers are diverse but also an individual consumer's valuation of electricity consumption varies across periods. The obtained results demonstrate that consumer sensitivities to price discounts significantly impact price discounts and load-shifts, which are not necessarily monotonic. The authors also observe that a diverse market leads to lower peak-to-average values and provider payoffs compared to a homogenous market unless the latter one is composed of consumers with relatively lower inconvenience costs during the peak periods.

scholarly journals North–south polarization of European electricity consumption under future warming

2017 ◽  
Vol 114 (38) ◽  
pp. E7910-E7918 ◽  
Author(s):  
Leonie Wenz ◽  
Anders Levermann ◽  
Maximilian Auffhammer
Keyword(s):  
Climate Change ◽  
Dose Response ◽  
Electricity Market ◽  
Western Europe ◽  
Peak Load ◽  
Electricity Consumption ◽  
Total Consumption ◽  
Electric Sector ◽  
Future Warming ◽  
The Impact

There is growing empirical evidence that anthropogenic climate change will substantially affect the electric sector. Impacts will stem both from the supply side—through the mitigation of greenhouse gases—and from the demand side—through adaptive responses to a changing environment. Here we provide evidence of a polarization of both peak load and overall electricity consumption under future warming for the world’s third-largest electricity market—the 35 countries of Europe. We statistically estimate country-level dose–response functions between daily peak/total electricity load and ambient temperature for the period 2006–2012. After removing the impact of nontemperature confounders and normalizing the residual load data for each country, we estimate a common dose–response function, which we use to compute national electricity loads for temperatures that lie outside each country’s currently observed temperature range. To this end, we impose end-of-century climate on today’s European economies following three different greenhouse-gas concentration trajectories, ranging from ambitious climate-change mitigation—in line with the Paris agreement—to unabated climate change. We find significant increases in average daily peak load and overall electricity consumption in southern and western Europe (∼3 to ∼7% for Portugal and Spain) and significant decreases in northern Europe (∼−6 to ∼−2% for Sweden and Norway). While the projected effect on European total consumption is nearly zero, the significant polarization and seasonal shifts in peak demand and consumption have important ramifications for the location of costly peak-generating capacity, transmission infrastructure, and the design of energy-efficiency policy and storage capacity.

Analysis of Smart Grid Affecting Electricity Market in China Based on Smart Materials

2011 ◽  
Vol 63-64 ◽  
pp. 493-496
Author(s):  
Hong Ze Li ◽  
Sen Guo ◽  
Bao Wang
Keyword(s):  
Smart Grid ◽  
Power Quality ◽  
Electricity Market ◽  
Smart Materials ◽  
Green Energy ◽  
Market Reform ◽  
Demand Side ◽  
Low Carbon ◽  
Interconnected Power System ◽  
The Impact

China’s electricity market reform has been on almost 10 years, and the proposition of constructing "Strong Smart Grid” in China has aroused widespread concerns, and also made an impact on electricity market. To assess the impact on electricity market, considering the current situation of China's electricity market, based on smart materials, analyze the risks of electricity market from constructing smart grid in terms of low-carbon power accessing grid, wide-area interconnected power system and large-capacity batch of green energy accessing grid, and also propose some requirements for electricity market from the perspective of power quality, demand side management and trading platform. Developing smart grid will promote China’s electricity market reform.

scholarly journals A Comparison of Households’ Energy Balance in Residential Smart Grid Pilots in the Netherlands

2019 ◽  
Vol 9 (15) ◽  
pp. 2993 ◽  
Author(s):  
Cihan Gercek ◽  
Wouter Schram ◽  
Ioannis Lampropoulos ◽  
Wilfried van Sark ◽  
Angèle Reinders
Keyword(s):  
The Netherlands ◽  
Smart Grid ◽  
Performance Indicators ◽  
Electricity Consumption ◽  
Key Performance Indicators ◽  
Heat Pumps ◽  
Comprehensive Overview ◽  
Self Sufficiency ◽  
One Year ◽  
The Impact

This paper presents an analysis that frames the impact of various smart grid technologies, with an objective to provide a transparent framework for residential smart grid demonstration projects based on predefined and clearly formulated key performance indicators. The analysis inspects measured energy data of 217 households from three smart grid pilot projects in the Netherlands and a public dataset with smart meter data from 70 households as a reference. The datasets were evaluated for one year and compared to provide insights on technologies and other differences based on seven key performance indicators, giving a comprehensive overview: monthly electricity consumption (100–600 kWh) and production (4–200 kWh); annually imported (3.1–4.5 MWh) and exported (0.2–1 MWh) electricity; residual load; peak of imported (4.8–6.8 kW) and exported (0.3–2.2 kW) electricity; import simultaneity (20–70.5%); feed in simultaneity (75–89%); self-sufficiency (18–20%); and self-consumption (50–70%). It was found that the electrification of heating systems in buildings by using heat pumps leads to an increase of annual electricity consumption and peak loads of approximately 30% compared to the average Dutch households without heat pumps. Moreover, these peaks have a high degree of simultaneity. To increase both the self-sufficiency and self-consumption of households, further investigations will be required to optimize smart grid systems.

scholarly journals ANALYSIS OF THE IMPACT OF THE NEW ELECTRICITY MARKET ON LEVELING THE LOAD SCHEDULE OF THE UNIFIED ENERGY SYSTEM OF UKRAINE

World Science ◽  
2020 ◽  
Vol 1 (2(54)) ◽  
pp. 4-10
Author(s):  
Rozen Viktor ◽  
Velykyi Serhii
Keyword(s):  
Electricity Market ◽  
Electric Energy ◽  
Electricity Consumption ◽  
Energy System ◽  
Energy Market ◽  
Service Companies ◽  
Industrial Enterprises ◽  
Load Schedule ◽  
Energy Service ◽  
The Impact

The article discusses methods of regulating the power consumption regime of the schedule of the unified energy system of Ukraine, which can reduce the irregularity load schedule by using stimulating tariffs for electricity charges. A scheme of the equipment operation principle is shown, which can operate in a mode of consumer-power regulator according to the criterion of reducing electricity charges for industrial enterprises. The result of the energy reform in Ukraine led to the rejection of differentiated electricity tariffs, and the transition to market relations between enterprises that are consumers of electric energy and energy service companies that are responsible for working in the electric energy market. The objective of the article is to demonstrate the practical formation of prices for enterprises and the work of electricity suppliers, which boils down to the ongoing planning of hourly volumes for consumers of electricity and the timely purchase of the said volumes in different segments of the electricity market The aim of the article is to demonstrate the formation of prices for enterprises. The work of energy service companies, which consists in the constant planning of hourly volumes of consumers of electric energy and the timely purchase of these volumes in different segments of the electric energy market. The problem of this formation is that enterprises do not have an incentive to regulating the schedule of the unified energy system of Ukraine, as the new tariffs do not differ in terms of electricity consumption in intraday and а reducе in electricity consumption by the enterprise during peak hours. The authors propose measures that are aimed at solving this problem. The proposed measures are mainly aimed at changes in the day-ahead electricity market, which will entail changes in its other segments.

scholarly journals Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives

Energies ◽  
2020 ◽  
Vol 13 (19) ◽  
pp. 5154
Author(s):  
Seyedfarzad Sarfarazi ◽  
Marc Deissenroth-Uhrig ◽  
Valentin Bertsch
Keyword(s):  
Real Time ◽  
Electricity Market ◽  
Business Models ◽  
Stackelberg Game ◽  
Energy Systems ◽  
Energy System ◽  
Theoretic Approach ◽  
Real Time Pricing ◽  
Tariff Structure ◽  
The Impact

In decentralized energy systems, electricity generated and flexibility offered by households can be organized in the form of community energy systems. Business models, which enable this aggregation at the community level, will impact on the involved actors and the electricity market. For the case of Germany, in this paper different aggregation scenarios are analyzed from the perspective of actors and the market. The main components in these scenarios are the Community Energy Storage (CES) technology, the electricity tariff structure, and the aggregation goal. For this evaluation, a bottom-up community energy system model is presented, in which the households and retailer are the key actors. In our model, we distinguish between the households with inflexible electricity load and the flexible households that own a heat pump or Photovoltaic (PV) storage systems. By using a game-theoretic approach and modeling the interaction between the retailer and households as a Stackelberg game, a community real-time pricing structure is derived. To find the solution of the modeled Stackelberg game, a genetic algorithm is implemented. To analyze the impact of the aggregation scenarios on the electricity market, a “Market Alignment Indicator” is proposed. The results show that under the considered regulatory framework, the deployment of a CES can increase the retailer’s operational profits while improving the alignment of the community energy system with the signals from the electricity market. Depending on the aggregation goal of the retailer, the implementation of community real-time pricing could lead to a similar impact. Moreover, such a tariff structure can lead to financial benefits for flexible households.

scholarly journals Examination of The Impact of Smart Grid Technologies For Energy Saving Potential on Residential Buildings In India

2019 ◽  
Vol 9 (2S2) ◽  
pp. 618-622
Keyword(s):  
Power Generation ◽  
Growth Rate ◽  
Energy Efficiency ◽  
Smart Grid ◽  
Residential Buildings ◽  
Electricity Consumption ◽  
Energy Saving Potential ◽  
Home Area ◽  
New Generation ◽  
The Impact

India, a developing country has targeted 9% growth rate, its yearly power generation has increased to 6.5% per year from 2011 to 2017. It is due to the fast urbanization and increase in building occupied area. However, India is experiencing energy scarcity nowadays. The power generation can’t able to satisfy the demand to withstand its growth rate in future. Therefore, this study investigates some technologies for connecting residential buildings to the Smart Grid, to minimize electricity consumption. It can be achieved by optimizing consumer’s devices through interface with Home Area Networks (HANs), Smart Grid-connected home machines diagnostics, and enhanced capability to aim and adopt energy efficiency agendas. These tactics create impacts on energy conservation that influencing the initial investment on new generation.

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