TITLE:
A Research of Real-Time Pricing Mechanism and Its Characteristics
AUTHORS:
Yichao Dong, Bin Zou
KEYWORDS:
Smart Grid, Demand-Side Management, Real-Time Pricing
JOURNAL NAME:
Journal of Power and Energy Engineering,
Vol.3 No.4,
April
14,
2015
ABSTRACT:
Real-Time Pricing (RTP) is proposed as an
effective Demand-Side Management (DSM) to adjust the load curve in order to
achieve the peak load shifting. At the same time, the RTP mechanism can also
raise the revenue of the supply-side and reduce the electricity expenses of
consumers to achieve a win-win situation. In this paper, a real-time pricing
algorithm based on price elasticity theory is proposed to analyze the energy
consumption and the response of the consumers in smart grid structure. We
consider a smart grid equipped with smart meters and two-way communication
system. By using real data to simulate the proposed model, some characteristics
of RTP are summarized as follows: 1) Under the condition of the real data, the
adjustment of load curve and reducing the expenses of consumers is obviously.
But the profit of power supplier is difficult to ensure. If we balance the
profits of both sides, the supplier and consumers, the profits of both sides
and the adjustment of load curve will be relatively limited. 2) If assuming the
response degree of consumers to real-time prices is high enough, the RTP
mechanism can achieve the expected effect. 3, If the cost of supply-side
(day-ahead price) fluctuates dramatically, the profits of both sides can be
ensured to achieve the expected effect.