Review of dynamic pricing programs in the U.S. and Europe: Status quo and policy recommendations

Hu, Zheng; Kim, Jin-Ho; Wang, Jianhui; Byrne, John

doi:10.1016/j.rser.2014.10.078

Cited by 129 publications

(47 citation statements)

References 15 publications

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“…A very complete review of dynamic pricing programs in the U.S. and Europe has been done [8], stating that Europe has a strong focus on large-scale roll-outs of smart meter devices.…”

Section: Versión Preprint -Primera Versiónmentioning

confidence: 99%

Contributions Of Heat Pumps To Demand Response: A Case Study Of A Plus-Energy Dwelling

Rodríguez¹

2018

SciTrends

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Demand Response programs are increasingly used in the electricity sector, since they allow consumers to play a significant role for balancing supply and demand by reducing or shifting their electricity consumption. For that purpose, incentives such as time-based rates have been proposed. The present study analyzes the potential benefits of operating the heat pump of a plus-energy dwelling which participates in a dynamic pricing market, benefitting from the thermal storage capacity of the building. The software TRNSYS 17 has been used to model the building and the supply system. A validation of the model was carried out by using available measurements of the dwelling.Three setpoint temperature scenarios have been considered for sixteen different strategies which depend on temperature and electricity price thresholds, with the aim of determining which alternatives could lead to significant savings while maintaining an acceptable thermal comfort. Several factors such as cost savings, heat pump consumption, ratio of self-consumption of the dwelling and use of the heat pump during peak hours were also evaluated in every case.The results show that dynamic price thresholds should be used instead of fixed price thresholds, which may cause low activations of the heat pump or overheat the building above the comfort limits. Cost savings up to 25% may be achieved by using optimal strategies, increasing the self-consumption ratio, having almost no influence on the thermal comfort and achieving significant peak reductions on the grid. The outcomes of this study show the importance of looking at the implications of such strategies on several criteria within a demand response framework.

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“…A very complete review of dynamic pricing programs in the U.S. and Europe has been done [8], stating that Europe has a strong focus on large-scale roll-outs of smart meter devices.…”

Section: Versión Preprint -Primera Versiónmentioning

confidence: 99%

Contributions Of Heat Pumps To Demand Response: A Case Study Of A Plus-Energy Dwelling

Rodríguez¹

2018

SciTrends

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“…For example, a higher price provides an incentive for customers to reduce their consumption, thus the customer is able to change the amount and time of electric energy usage depending on preferences. Various pricing mechanisms, such as time-of-use pricing (TOU), real-time pricing (RTP), and critical peak pricing (CPP), are used by utilities to encourage customers to actively participate in PBP [6,48].…”

Section: Smart Home Energy Managementmentioning

confidence: 99%

Electric energy management in residential areas through coordination of multiple smart homes

Celik

Roche

Suryanarayanan

et al. 2017

Renewable and Sustainable Energy Reviews

106

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Grid modernization through philosophies such as the Smart Grid has the potential to meet increasing demand and integrate new distributed generation resources at the same time. Using advanced communication and computing capabilities, the Smart Grid offers a new avenue of controlling end-user assets, including small units such as home appliances. To enable such evolution, shifting from centralized to decentralized control strategies is required. Effective demand-side management (DSM) and demand response (DR) approaches hold the promise for efficient energy management in homes and neighborhood areas, by enabling the precise control of resources to reduce net demand. However, with such strategies, independently taken decisions can cause undesired effects such as rebound peaks, contingencies, and instabilities in the network. Therefore, the interactions between the energy management actions of multiple households is a challenging issue in the Smart Grid. This paper provides a review of the background of residential load modeling with DR and DSM approaches in a single household and concepts of coordinating mechanisms in a neighborhood area. The objective of this paper is to classify, via comparison, the various coordination structures and techniques from recent research. The results of recent research in the field reveal that the coordination of energy management in multiple households can benefit both the utility (i.e., the service provider) and the customer. The paper concludes with a discussion on the prevalent critical issues in this area.

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“…In order to increase users' flexibility and select the best pricing scheme while maintaining a stable electricity demand, energy usage patterns and available tariffs have to be studied together in order to allow the consumers to get important economic benefits (especially in cases where households rely on electricity for heating) [24]. Consumer electricity price-responsiveness has been extensively researched and summarized in Hu et al [25]; where the lack of customer support in demand response programs has been identified as a major barrier and explained by price disconnection and electricity provider disincentive. In fact, most electricity consumers are still unfamiliar with the concept of smart grids and smart meters, as well as the reasons for and potential benefits from demand response and demand flexibility.…”

Section: Variable Electricity Tariffsmentioning

confidence: 99%

Consumers’ Perspective on Full-Scale Adoption of Smart Meters: A Case Study in Västerås, Sweden

Vassileva

Campillo

2016

Resources

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Large-scale deployment of reliable smart electricity metering networks has been considered as the first step towards a smart, integrated and efficient grid. On the consumer's side, however, the real impact is still uncertain and limited. This paper evaluates the consumer's perspective in the city of Västerås, Sweden, where full implementation of smart meters has been reached. New services, such as consumption feedback and the possibility to choose dynamic electricity pricing contracts, have been available from the adoption of this infrastructure. A web-based survey evaluating customers' perception of these new services was carried out. The survey included consumers' personal information, preferences about the type of information and the frequency of delivery and the preference for electricity pricing contracts. The results showed that the electricity consumption information offered by distribution system operators (DSOs) today is not detailed enough for customers to react accordingly. Additionally, while variable pricing contracts are becoming more popular, the available pricing schemes do not encourage customers to increase their consumption flexibility. Therefore, more detailed information from the smart meters should be made available, including disaggregated electricity consumption per appliance that would allow consumers to have more control over their energy consumption activities.

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Review of dynamic pricing programs in the U.S. and Europe: Status quo and policy recommendations

Cited by 129 publications

References 15 publications

Contributions Of Heat Pumps To Demand Response: A Case Study Of A Plus-Energy Dwelling

Contributions Of Heat Pumps To Demand Response: A Case Study Of A Plus-Energy Dwelling

Electric energy management in residential areas through coordination of multiple smart homes

Consumers’ Perspective on Full-Scale Adoption of Smart Meters: A Case Study in Västerås, Sweden

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