A Research of Real-Time Pricing Mechanism and Its Characteristics

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.

Improving demand‐response scheme in smart grids using reinforcement learning

“…Mid‐peak time (8:00 am ‐3:00 pm , 9:00 pm ‐11:00 pm ), on‐peak time (3:00 pm ‐9:00 pm ), and off‐peak time (11:00 pm ‐8:00 am ). Also, the cross‐ and self‐elasticity values are presented in Table 3 35,36 …”

“…Also, the cross-and self-elasticity values are presented in Table 3. 35,36 We considered the price set as P = {0.08:0.025:0.38} ($/KW h) according to the price range in Austin, TX Electricity Statistics. 37 In this study, the weighting factor α is assumed to 0.7, which shows that the LSE's cost is more importance than the customers' cost.…”