Demand response for residential customers : based on real-time price elasticity of electricity
1University of Oulu, Oulu Business School, Department of Economics, Economics
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This study surveyed the impacts of the expanding Real-Time Price (RTP) scheme on residential electricity consumption when households shift from fixed price to hourly spot prices. A unique and detailed data of electricity consumption had been used. The data are based on working days of winter and summer for Swedish detached houses from 2005 to 2008. Solar power is valuable energy with low emission, which can be achieved by installing solar panels on the household’s roof. Also, it reduces the system cost and provides quick access to energy for customers. The preliminary photovoltaic production evaluated through HARMONIE Numerical Weather Prediction data. Four types of households are analyzed based on various patterns of prices, elasticities, and the share of households in RTP program with and without solar panels. The results of this study demonstrate that putting more residential customers on RTP contracts will shift load, decrease electricity demand, total capacity, and increase economic welfare. The simulations show that the social welfare gained from increasing the share of customers on RTP are notable. Also, the estimated cost saving indicates that the effect of shifting from a flat rate to RTP is positive. Furthermore, the effect of small-scale solar production on electricity consumption is considered. The combination of RTP with solar energy would lead to a significant decrease in electricity consumption during off-peak periods in winter and both peak and off-peak load in summer.
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