Smart meter tariff pricing using load demand response model

Abstract

One of the most practical demand response (DR) programs is time of use (TOU) pricing program. Recently in Iran, TOU-DR program has been initiated by installing three-tariff smart meters, especially for residential complexes. The use of appropriate tariffs in different load time periods, i.e. peak-load, normal-load, and low-load conditions, is of great importance. Tariff pricing should be done such that not only load curves are improved, but the customers satisfaction is also met. In this paper, by modeling the reaction of customers, two new methods are proposed and compared for optimal pricing of electricity tariffs. The proposed techniques are employed on Iran's national power load curve in obtained in 2014. In this research, it is assumed that the system operator has the high and low limits of electricity costs in different time periods. The proposed method is simulated using General Algebraic Modeling System (GAMS) optimization software. The obtained results validate the proposed method effectiveness.