An Incentive Based Dynamic Pricing in Smart Grid: A Customer’s Perspective

Abstract

Price based demand response is an important strategy to facilitate energy retailers and end-users to maintain a balance between demand and supply while providing the opportunity to end users to get monetary incentives. In this work, we consider real-time electricity pricing policy to further calculate the incentives in terms of reduced electricity price and cost. Initially, a mathematical model based on the backtracking technique is developed to calculate the load shifted and consumed in any time slot. Then, based on this, the electricity price is calculated for all types of users to estimate the incentives through load shifting profiles. To keep the load under the upper limit, the load is shifted in other time slots in such a way to facilitate end-users regarding social welfare. The user who is not interested in participating load shifting program will not get any benefit. Then the well behaved functional form optimization problem is solved by using a heuristic-based genetic algorithm (GA), wwhich converged within an insignificant amount of time with the best optimal results. Simulation results reflect that the users can obtain some real incentives by participating in the load scheduling process.

Incentive techniques for the Internet of Things: A survey

“…The simulation results proved that the proposed real-time pricing incentive scheme can reduce the daily costs by 37%. A similar work in [138] considered a real-time pricing policy for electricity for calculating the incentives with respect to reduced cost and electricity price. The authors have developed a technique based on backtracking to develop a mathematical model for calculating the load consumed and shifted in a particular time slot, through which the price of the electricity is calculated for all categories of users for estimating the incentives based on the profile of load shifting.…”

Dynamic Pricing for Dual-Channel Supply Chain considering Consumers with Double-Entry Mental Accounting

“…Bao et al [11] studied the short-term and long-term repeated game behaviors of two parallel supply chains involving duopoly vehicle manufacturers producing BEVs and fuel vehicles, taking consumers' low-carbon preference and government subsidy scheme into account. Alquthami et al [12] studied the strategy of price-based demand response and considered the real-time electricity pricing policy to calculate incentives in terms of reduced cost. Shao [13] developed a two-period dynamic game framework to explore optimal pricing and upgrade channel choice when the supplier introduces new upgraded products to a market populated by strategic consumers.…”

An Economic Dispatch Method of Microgrid Based on Fully Distributed ADMM Considering Demand Response

“…In addition to incentive mechanisms, demand response also uses price mechanisms to guide users' electricity consumption behavior. A real-time price (RTP) decision model was developed to implement the demand response, effectively minimized the generation cost [9]. In [10], the authors proposed an energy management system strategy by introducing pricebased demand response to reduce the operating cost of the entire microgrid.…”