Modeling and simulation of consumer response to dynamic pricing.

Journal Article · Wed Aug 01 04:00:00 EDT 2012 · Applied Energy

DOI:https://doi.org/10.1016/j.apenergy.2011.11.022· OSTI ID:1049033

Valenzuela, J; Thimmapuram, P; Kim, J ^[1]

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1. Decision and Information Sciences

Assessing the impacts of dynamic-pricing under the smart grid concept is becoming extremely important for deciding its full deployment. In this paper, we develop a model that represents the response of consumers to dynamic pricing. In the model, consumers use forecasted day-ahead prices to shift daily energy consumption from hours when the price is expected to be high to hours when the price is expected to be low while maintaining the total energy consumption as unchanged. We integrate the consumer response model into the Electricity Market Complex Adaptive System (EMCAS). EMCAS is an agent-based model that simulates restructured electricity markets. We explore the impacts of dynamic-pricing on price spikes, peak demand, consumer energy bills, power supplier profits, and congestion costs. A simulation of an 11-node test network that includes eight generation companies and five aggregated consumers is performed for a period of 1 month. In addition, we simulate the Korean power system.

• Research Organization: Argonne National Laboratory (ANL)
• Sponsoring Organization: SC
• DOE Contract Number: AC02-06CH11357
• OSTI ID: 1049033
• Report Number(s): ANL/DIS/JA-66934
• Journal Information: Applied Energy, Journal Name: Applied Energy Journal Issue: Aug. 2012 Vol. 96; ISSN 0306-2619; ISSN APENDX
• Country of Publication: United States
• Language: ENGLISH

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