Efficiency improving of time of use tariffs for residential customer to create more valuable demand response resource

Abstract

The means of increasing the impact of time of use tariffs to reduce peak load in the power system caused by household consumers were examined. The introduced concept of TOU tariff elasticity for shifting the demand allowed the comparison of such tariffs offered in Poland by the biggest power sale companies. The estimate of the needed DSR volume to support the safe balancing of the Polish power system was based on the example of the year 2012 for the hours with the highest balancing market prices. To create a share in such DSR resource the implementation of the demand side program with the critical peak rate was proposed for household customers of one of the largest electric energy suppliers in Poland. Basing on the concept of tariff elasticity the possible effects of such a program were presented and the financial risks associated with its implementation were shortly discussed.