An Incentive Based Dynamic Pricing in Smart Grid: A Customer’s Perspective

Thamer Alquthami, Ahmad H. Milyani, Muhammad Awais and Muhammad B. Rasheed
Additional contact information
Thamer Alquthami: Electrical and Computer Engineering Department, King Abdulaziz University, Jeddah 21589, Saudi Arabia
Ahmad H. Milyani: Electrical and Computer Engineering Department, King Abdulaziz University, Jeddah 21589, Saudi Arabia
Muhammad Awais: Department of Technology, The University of Lahore, Lahore 54000, Pakistan
Muhammad B. Rasheed: Department of Electronics and Electrical Systems, The University of Lahore, Lahore 54000, Pakistan

Sustainability, 2021, vol. 13, issue 11, 1-17

Abstract: Price based demand response is an important strategy to facilitate energy retailers and end-users to maintain a balance between demand and supply while providing the opportunity to end users to get monetary incentives. In this work, we consider real-time electricity pricing policy to further calculate the incentives in terms of reduced electricity price and cost. Initially, a mathematical model based on the backtracking technique is developed to calculate the load shifted and consumed in any time slot. Then, based on this, the electricity price is calculated for all types of users to estimate the incentives through load shifting profiles. To keep the load under the upper limit, the load is shifted in other time slots in such a way to facilitate end-users regarding social welfare. The user who is not interested in participating load shifting program will not get any benefit. Then the well behaved functional form optimization problem is solved by using a heuristic-based genetic algorithm (GA), wwhich converged within an insignificant amount of time with the best optimal results. Simulation results reflect that the users can obtain some real incentives by participating in the load scheduling process.

Keywords: demand side management; demand response; load scheduling; real time pricing; genetic algorithm; dynamic incentives (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/2071-1050/13/11/6066/pdf (application/pdf)
https://www.mdpi.com/2071-1050/13/11/6066/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:11:p:6066-:d:563862

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().