An Electricity Procurement Model with Energy and Peak Charges

Philpott, Andy; Pritchard, Geoffrey

doi:10.1142/9789814407519_0014

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2014

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“…Anytime peak pricing can be contrasted with coincident peak pricing (and its relation "time-ofuse" pricing) which imposes a demand charge in periods when the system experiences peak demand (as modeled in [6] for example). The Hopkinson rate was originally intended to charge for electricity when it was primarily used for lighting, and so any user's peak demand typically coincided with the system peak.…”

Section: Introductionmentioning

confidence: 99%

Optimization of demand response through peak shaving

Zakeri¹,

Craigie²,

Philpott³

et al. 2014

Operations Research Letters

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We consider a consumer of a resource, such as electricity, who must pay a per unit charge to procure the resource, as well as a peak demand charge. We will assume that this consumer has some ability to self-generate and present an efficient linear programming formulation for the demand response of such a consumer. We will establish a monotonicity result that indicates fuel supply of S, utilized for self generation, may be spent in successive steps adding to S.

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Section: Introductionmentioning

confidence: 99%