A methodological framework for designing dynamic heat price for demand response in district heating

Reza Mokhtari, Rune Grønborg Junker, Henrik Madsen and Rongling Li

Energy, 2025, vol. 324, issue C

Abstract: Currently, the price per consumption of most district heating consumers is static, providing no incentive for consumers to change their heating behavior. A dynamic pricing structure can encourage consumers to adjust their heat demand according to supply conditions. This paper presents a methodology for designing day-ahead dynamic price profiles for district heating to encourage buildings for certain demand response purposes effectively. This method relies on a method to characterize the energy flexibility of buildings and an inverse optimization to obtain the optimal dynamic price profile. The methodology is tested on a residential neighborhood as a case study, using a virtual experiment that includes buildings and a district heating network. Results show that the designed dynamic price could encourage consumers to change their demand profile to match a pre-defined load-shifting profile with 16.6 % MAPE. Accordingly, the peak load was reduced by 84.4 % as a result of responding to a tailored price profile, considering the flexibility potential of the neighborhood. In addition, heat costs in the neighborhood were reduced by 46.6 % compared to the flat price. The findings of this paper highlight the benefits of the dynamic heat price for district heating operators and consumers over the flat price.

Keywords: Energy flexibility; District heating; Dynamic heat price; Demand response; Peak load reduction (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544225015798
Full text for ScienceDirect subscribers only

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:eee:energy:v:324:y:2025:i:c:s0360544225015798

DOI: 10.1016/j.energy.2025.135937

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().