Time-of-use pricing in retail electricity market: Step tariff vs. usage-based schemes

2016 ◽  
Author(s):  
Yanglin Zhou ◽  
Feng Gao ◽  
Song Ci ◽  
Yang Yang ◽  
Yuemei Xu
Keyword(s):  
Electricity Market ◽  
Time Of Use Pricing

scholarly journals A Short-Term Decision Model for Electricity Retailers: Electricity Procurement and Time-of-Use Pricing

Energies ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 3258 ◽  
Author(s):  
Feihu Hu ◽  
Xuan Feng ◽  
Hui Cao
Keyword(s):  
Robust Optimization ◽  
Demand Response ◽  
Electricity Market ◽  
Decision Model ◽  
Expected Profit ◽  
Optimization Approach ◽  
Short Term ◽  
Spot Prices ◽  
Retail Prices ◽  
Time Of Use Pricing

This paper establishes a short-term decision model, based on robust optimization, for an electricity retailer to determine the electricity procurement and electricity retail prices. The electricity procurement process includes purchasing electricity from generation companies and from the spot market. The selling prices of electricity for the customers are based on time-of-use (TOU) pricing which is widely employed in modern electricity market as a demand response program. The objective of the model is to maximize the expected profit of the retailer through optimizing the electricity procurement strategy and electricity pricing scheme. A price elasticity matrix (PEM) is adopted to model the demand response. Also, uncertainty in spot prices is modeled using a robust optimization approach, in which price bounds are considered instead of predicted values. Using a robust optimization approach, the retailer can adjust the level of robustness of its decisions through a robust control parameter. A case study is presented to illustrate the performance of the model. The simulation results demonstrate that the developed model is effective in increasing the expected profit of the retailer and flattening the load profiles of customers.

Time-of-Use Pricing in the Electricity Market: An Application of Stackelberg Game

2019 ◽  
Author(s):  
Atharva Ketkar ◽  
Joselyn Koonamparampath ◽  
Mayur Sawant
Keyword(s):  
Power Consumption ◽  
Demand Response ◽  
Electricity Market ◽  
Stackelberg Game ◽  
Electrical Power ◽  
Electricity Industry ◽  
Electricity Price ◽  
Electricity Pricing ◽  
Best Response ◽  
Time Of Use Pricing

Abstract Electrical power, generated and consumed, is perhaps, one of today’s most important construct in determining the progress of a people. The power mismatch between the generated and consumed power is one of the major issues faced in the electricity industry. This can be addressed by analysing user behaviour and manipulating it. This paper attempts to put forth a demand response (DR) technique using the concept of Time-of-Use (ToU) electricity pricing. The utilities have an upper hand of quoting the electricity price whereas the users must follow this price and give their best response of power consumption. This process is similar to a leader-follower setting as in a Stackelberg game where the follower acts according to the leader’s strategy and gives its best response in every situation. This paper proposes a pricing technique where the users are charged according to the amount of power consumed in the specific period of time.

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