Smart tariffs, as incentives to trigger DSR, play a critical role in the energy sector to exploit the huge resources from the customer side. Load shifting in response to appropriate pricing signals could produce energy cost savings and network investment deferral in addition to other benefits. This chapter investigates smart tariff design enabled by smart metering platform and its application to end customers. The variable ToU tariffs are designed based on energy price variations, which are then scaled to include network transportation costs. In detail, RTP tariffs are developed based on annual energy price variations, where two novel approaches are proposed to convert the tariffs into ToU tariffs. The two new approaches are equal interval grouping and hierarchical clustering. The developed tariffs by both approaches are for eight scenarios/days, i.e. weekdays and weekends in four seasons, to reflect the tariff diversity throughout a calendar year. The DSR to these tariffs are therefore able to reduce energy cost by moving part of energy consumption from periods with expensive energy, where demand is met by expensive generation units.
Smart tariffs for demand response from smart metering platform, Page 1 of 2
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