Price-Based Demand Side Response Programs and Their Effectiveness on the Example of TOU Electricity Tariff for Residential Consumers

Jerzy Andruszkiewicz, Józef Lorenc and Agnieszka Weychan
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Jerzy Andruszkiewicz: Institute of Electric Power Engineering, Poznan University of Technology, 60-965 Poznan, Poland
Józef Lorenc: Institute of Electric Power Engineering, Poznan University of Technology, 60-965 Poznan, Poland
Agnieszka Weychan: Institute of Electric Power Engineering, Poznan University of Technology, 60-965 Poznan, Poland

Energies, 2021, vol. 14, issue 2, 1-21

Abstract: Demand side response is becoming an increasingly significant issue for reliable power systems’ operation. Therefore, it is desirable to ensure high effectiveness of such programs, including electricity tariffs. The purpose of the study is developing a method for analysing electricity tariff’s effectiveness in terms of demand side response purposes based on statistical data concerning tariffs’ use by the consumers and price elasticity of their electricity demand. A case-study analysis is presented for residential electricity consumers, shifting the settlement and consequently the profile of electricity use from a flat to a time-of-use tariff, based on the comparison of the considered tariff groups. Additionally, a correlation analysis is suggested to verify tariffs’ influence of the power system’s peak load based on residential electricity tariffs in Poland. The presented analysis proves that large residential consumers aggregated by tariff incentives may have a significant impact on the power system’s load and this impact changes substantially for particular hours of a day or season. Such efficiency assessment may be used by both energy suppliers to optimize their market purchases and by distribution system operators in order to ensure adequate generation during peak load periods.

Keywords: demand side response; residential consumers; correlation; price elasticity; electricity demand; load profile (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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