On the trade-off between real-time pricing and the social acceptability costs of demand response

Silva, Hendrigo Batista da; Santiago, Leonardo

doi:10.1016/j.rser.2017.05.219

Cited by 20 publications

(12 citation statements)

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“…Our participants however expressed deep concerns about the effectiveness of dynamic pricing, as well as equity issues. The concerns expressed by our participants enrich the literature on the importance of understanding the complexity of trade-off decisions as government intervention and market mechanisms interact (see, for example, da Silva and Santiago, 2017;Einsiedel et al, 2013;Trutnevyte et al, 2015).…”

Section: Discussionmentioning

confidence: 78%

“…Dynamic pricing systems provide varying rates across time and can be further divided into three sub-types: time-of-use, critical peak pricing, and real-time tariffs (see, for example, Brown and Zhou, 2013). When compared with traditional flat-rate systems, dynamic pricing may induce price-sensitive consumers to reschedule consumption of electricity and reduce overall consumption through load shifting and load reduction (Barton et al, 2013;Brown and Zhou, 2013;Silva and Santiago, 2017).…”

Section: Dynamic Pricing: Its Typology and The Associated Trade-off Dmentioning

confidence: 99%

“…As shown in Figure 1 (in the Supplementary Information Section), different pricing systems have distinctive features: each of them has their own functions and mechanisms creating opportunities for residential consumers to reduce electricity bills in various ways (see, for example, Brown and Zhou, 2013). They also involve different sets of trade-off decisions (see, for example, Fell et al, 2015;Silva and Santiago, 2017) which are associated with different sets of benefits, costs, and risks. There are at least five key dimensions that need to be considered when comparing pricing options: economic, environmental, technological, social and regulatory factors (Faruqui and Palmer, 2011;Wang et al, 2012) (Table 1 -in the Supplementary Information Section).…”

Section: Dynamic Pricing: Its Typology and The Associated Trade-off Dmentioning

confidence: 99%

See 2 more Smart Citations

Understanding undergraduate students’ perceptions of dynamic pricing policies: An exploratory study of two pilot deliberative pollings (DPs) in Guangzhou, China and Kyoto, Japan

Mah

Lam

Siu

et al. 2018

Journal of Cleaner Production

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Smart grids (SGs) are being deployed as a transformational technology in energy transitions. However, negative consumer responses to both smart meters and new pricing systems indicate that building public acceptance of these transitions is critically important. Deliberative Pollings (DPs) offer the potential to effectively integrate public perceptions into energy transition decision-making. Most deliberative governance studies focus on western countries and very few examine the Asian context. This paper presents an exploratory study of undergraduate students' perceptions of dynamic pricing options in two pilot DPs conducted in the cities of Guangzhou and Kyoto. The study indicates that deliberative processes yield mixed outcomes in changing participants' choice of pricing options. While many welcomed new pricing options, a significant number supported status quo options. Second, the normative mechanisms and outcomes of deliberative participation seem to apply in the Asian context. DP appears to enhance participants' acceptance of complex and sophisticated pricing options. Dialogic processes enhanced the participants' ability to understand complex issues and weigh up trade-offs when comparing options. Third, national level contextual differences associated with public distrust and familiarity with market logic may explain the differences in responses between Chinese and Japanese participants. We argue that complex and controversial energy decision-making needs to be supported by deliberative participatory processes to enable citizens to make informed and considered choices.

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Section: Discussionmentioning

confidence: 78%

Section: Dynamic Pricing: Its Typology and The Associated Trade-off Dmentioning

confidence: 99%

Section: Dynamic Pricing: Its Typology and The Associated Trade-off Dmentioning

confidence: 99%

See 1 more Smart Citation

Understanding undergraduate students’ perceptions of dynamic pricing policies: An exploratory study of two pilot deliberative pollings (DPs) in Guangzhou, China and Kyoto, Japan

Mah

Lam

Siu

et al. 2018

Journal of Cleaner Production

View full text Add to dashboard Cite

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“…Even though RTP is a real‐time pricing, which is seen as a positive point of view, 29,30 some researchers find that RTP, in some cases, is a two‐edged sword 31 . With the bidirectional communication between consumers and providers, numerous messages will be transmitted, leading to problems in the network such as messages loss, attacks, and delays of transmission.…”

Section: Dynamic Pricingmentioning

confidence: 99%

A systematical analysis on the dynamic pricing strategies and optimization methods for energy trading in smart grids

Alsalloum

Merghem-Boulahia

Rahim

2020

Int Trans Electr Energ Syst

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Summary The smart grid (SG) is an enhancement of the traditional electrical grid. Its main objectives are diverse, focusing mainly on minimizing the energy cost, as well as energy consumption. The smooth integration of renewable energy balances energy production and consumption. Dynamic pricing (DP) becomes one of the important integrated solutions, which comes in line with the global efficiency and reliability of smart grids. DP incentivizes the consumer to participate in the energy scheduling decision, mainly in the real‐time decision. Consumer represents the key challenge in the SG in perspective to make the energy system more efficient. Moreover, the success of smart grids relies mostly on the evolution of the widely used optimization methods. These include measures to encourage consumers and providers to be involved in the development of the SG. The main objective of this article is to review and analyze the recent research works regarding the pricing strategies and optimization methods utilized in the context of SG. A systematic analysis is thus performed by considering twofold views. First, it comprehensively approaches the pricing majors and visualizes the game theory used in real‐time pricing. Second, it describes the optimization methods used in the smart grid context and compares them in terms of their complexity.

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“…As, traditionally, energy providers do not provide incentives for consumers to change their load patterns, clients are unaware of ways to efficiently use energy [271]. However, those who exhibit a demand response by changing their power consumption in relation to the market's electricity prices are currently encouraged by the provision of different types of programs, such as direct load control, the emergency demand response program (EDRP), demand bidding, capacity market programs, interruptible rates, time-of-use (TOU), real-time pricing (RTP) and critical-peak pricing (CPP) [272][273][274][275][276][277]. These programs have their own unique features that determine their suitability for a particular community and basically offer financial incentives or impose penalties to encourage customers to use their loads flexibly.…”

Section: Challenges Of Microgridsmentioning

confidence: 99%

Evolution of Microgrids with Converter-Interfaced Generations: Challenges and Opportunities

Hossain¹,

Pota²,

Hossain³

et al. 2018

Preprint

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Although microgrids facilitate the increased penetration of distributed generations (DGs) and improve the security of power supplies, they have some issues that need to be better understood and addressed before realising the full potential of microgrids. This paper presents a comprehensive list of challenges and opportunities supported by a literature review on the evolution of converter-based microgrids. The discussion in this paper presented with a view to establishing microgrids as distinct from the existing distribution systems. This is accomplished by, firstly, describing the challenges and benefits of using DG units in a distribution network and then those of microgrid ones. Also, the definitions, classifications and characteristics of microgrids are revised according to their specific roles to provide a sound basis for novice researchers to undertake ongoing research on microgrids.

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On the trade-off between real-time pricing and the social acceptability costs of demand response

Cited by 20 publications

References 50 publications

Understanding undergraduate students’ perceptions of dynamic pricing policies: An exploratory study of two pilot deliberative pollings (DPs) in Guangzhou, China and Kyoto, Japan

Understanding undergraduate students’ perceptions of dynamic pricing policies: An exploratory study of two pilot deliberative pollings (DPs) in Guangzhou, China and Kyoto, Japan

A systematical analysis on the dynamic pricing strategies and optimization methods for energy trading in smart grids

Evolution of Microgrids with Converter-Interfaced Generations: Challenges and Opportunities

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