Price-Based Demand Response: A Three-Stage Monthly Time-of-Use Tariff Optimization Model

Peipei You, Sitao Li, Chengren Li, Chao Zhang, Hailang Zhou, Huicai Wang, Huiru Zhao and Yihang Zhao ()
Additional contact information
Peipei You: State Grid Energy Research Institute Co., Ltd., Beijing 102209, China
Sitao Li: State Grid Energy Research Institute Co., Ltd., Beijing 102209, China
Chengren Li: State Grid Energy Research Institute Co., Ltd., Beijing 102209, China
Chao Zhang: State Grid Energy Research Institute Co., Ltd., Beijing 102209, China
Hailang Zhou: Marketing Service Center of State Grid Chongqing Electric Power Company, Chongqing 400023, China
Huicai Wang: Marketing Service Center of State Grid Chongqing Electric Power Company, Chongqing 400023, China
Huiru Zhao: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Yihang Zhao: School of Economics and Management, North China Electric Power University, Beijing 102206, China

Energies, 2023, vol. 16, issue 23, 1-20

Abstract: In this research, we developed a three-stage monthly time-of-use (TOU) tariff optimization model to address the concerns of confusing time period division, illogical price setting, and incomplete seasonal element consideration in the previous TOU tariff design. The empirical investigation was conducted based on load, power generation, and electricity pricing data from a typical northwest region in China in 2022. The findings indicate the following: (1) In producing the typical net load curves, the employed K-means++ technique outperformed the standard models in terms of the clustering effect by 4.27–26.70%. (2) Following optimization, there was a decrease of 1900 MW in the maximum monthly abandonment of renewable energy, a decrease of 0.31–53.94% in the peak–valley difference, and a decrease of 2.03–17.27% in the monthly net load cost. (3) By taking extra critical peak and deep valley time periods into account, the average net load cost decreased by 10.36% compared with conventional peak–flat–valley time period division criteria.

Keywords: time-of-use tariff; time period division; price optimization; effectiveness optimization (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: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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