Reducing electricity consumption peaks with parametrised dynamic pricing strategies given maximal unit prices

Nicolas Höning, J.A. La Poutré

Research output: Chapter in Book/Conference proceedings/Edited volumeConference contributionScientific

2 Citations (Scopus)

Abstract

Demand response is a crucial mechanism for flattening of peak loads. For its implementation, we not only require consumers who react to price changes, but also intelligent
strategies to select prices. We propose a parametrised metastrategy for dynamic pricing and identify suitable strategies for given scenarios through offline optimisation using a population model. We also model an important and novel constraint: a price cap (a maximal unit price) for consumer protection. We show in computational simulations that the maximal unit price influences the peak reduction potential of dynamic pricing. We compare our dynamic pricing approach with a constant pricing approach and show that our approach, used by a profitoptimising seller, is both peak-reducing and equally profitable.
Original languageEnglish
Title of host publicationProceedings of International Workshop on Intelligent Agent Technology, Power Systems and Energy Markets 2013
EditorsZ Vale, J Sousa, F Lopes, H Coelho
Place of PublicationPiscataway, NJ
PublisherIEEE Society
Pages1-5
Number of pages5
Publication statusPublished - 2013
Externally publishedYes
EventIATEM 2013, Prague, Czech - Piscataway, NJ, USA
Duration: 27 Aug 201327 Aug 2013

Publication series

Name
PublisherIEEE

Conference

ConferenceIATEM 2013, Prague, Czech
Period27/08/1327/08/13

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  • Cite this

    Höning, N., & La Poutré, J. A. (2013). Reducing electricity consumption peaks with parametrised dynamic pricing strategies given maximal unit prices. In Z. Vale, J. Sousa, F. Lopes, & H. Coelho (Eds.), Proceedings of International Workshop on Intelligent Agent Technology, Power Systems and Energy Markets 2013 (pp. 1-5). IEEE Society.