A two-part dynamic pricing policy for household electricity consumption scheduling with minimized expenditure
•Mixed integer, non-linear cost minimizing scheduling model with logical constraints.•The model includes power grid, in-house renewable energy and battery.•Real-time, two-part pricing based on forecasted grid demand and planned consumption.•The consumer gets a unique price using a piecewise linear p...
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| Published in | International journal of electrical power & energy systems Vol. 100; pp. 29 - 41 |
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| Main Authors | , |
| Format | Journal Article |
| Language | English |
| Published |
Elsevier Ltd
01.09.2018
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| Subjects | |
| Online Access | Get full text |
| ISSN | 0142-0615 1879-3517 |
| DOI | 10.1016/j.ijepes.2018.01.028 |
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| Abstract | •Mixed integer, non-linear cost minimizing scheduling model with logical constraints.•The model includes power grid, in-house renewable energy and battery.•Real-time, two-part pricing based on forecasted grid demand and planned consumption.•The consumer gets a unique price using a piecewise linear price function.•A price range is provided by supplier instead of discrete price points.
In this paper we propose an optimization model for scheduling electrical appliances for an individual household. Here, customers are offered dynamic prices which are a function of that household’s planned consumption and forecasted grid load. We consider a grid connected system with a battery and an in-house renewable energy generator in the proposed scheduling model. This model minimizes the customer’s electricity bill subject to different constraints. We analyze our model with various pricing policies, price ranges and appliance operation windows. We find that the expenditure of the consumer decreases considerably in our model when shifting from flat prices to dynamic prices based on the forecasted grid load and the consumer’s individual planned consumption. Considerable expenditure reduction and individual load flattening is achieved with the use of a battery and an in-house renewable energy generator. Also, larger the price range, higher is the load flattening and lower is the expenditure. We show that our proposed pricing policy is beneficial to both consumers and suppliers. |
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| AbstractList | •Mixed integer, non-linear cost minimizing scheduling model with logical constraints.•The model includes power grid, in-house renewable energy and battery.•Real-time, two-part pricing based on forecasted grid demand and planned consumption.•The consumer gets a unique price using a piecewise linear price function.•A price range is provided by supplier instead of discrete price points.
In this paper we propose an optimization model for scheduling electrical appliances for an individual household. Here, customers are offered dynamic prices which are a function of that household’s planned consumption and forecasted grid load. We consider a grid connected system with a battery and an in-house renewable energy generator in the proposed scheduling model. This model minimizes the customer’s electricity bill subject to different constraints. We analyze our model with various pricing policies, price ranges and appliance operation windows. We find that the expenditure of the consumer decreases considerably in our model when shifting from flat prices to dynamic prices based on the forecasted grid load and the consumer’s individual planned consumption. Considerable expenditure reduction and individual load flattening is achieved with the use of a battery and an in-house renewable energy generator. Also, larger the price range, higher is the load flattening and lower is the expenditure. We show that our proposed pricing policy is beneficial to both consumers and suppliers. |
| Author | Dutta, Goutam Mitra, Krishnendranath |
| Author_xml | – sequence: 1 givenname: Krishnendranath orcidid: 0000-0001-9307-8285 surname: Mitra fullname: Mitra, Krishnendranath email: kmitra.dgp@gmail.com organization: Department of Business Management, University of Calcutta, 1, Reformatory Street, Kolkata 700 027, West Bengal, India – sequence: 2 givenname: Goutam surname: Dutta fullname: Dutta, Goutam email: goutam@iima.ac.in organization: Department of Production and Quantitative Methods, Wing 03, Indian Institute of Management, Vastrapur, Ahmedabad 380 015, Gujarat, India |
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| CitedBy_id | crossref_primary_10_1016_j_ijepes_2021_106983 crossref_primary_10_1016_j_enbuild_2024_114751 crossref_primary_10_1007_s12652_021_03445_w crossref_primary_10_2139_ssrn_3989751 crossref_primary_10_1057_s41272_021_00298_y crossref_primary_10_3390_en15041385 crossref_primary_10_1016_j_est_2022_104557 crossref_primary_10_1080_13467581_2021_1987244 crossref_primary_10_3390_en12203928 |
| Cites_doi | 10.1109/TDC.2012.6281462 10.1016/j.apenergy.2012.09.010 10.1109/ISGT.2012.6175810 10.1016/j.egypro.2014.11.962 10.1109/ISGT.2014.6816474 10.1057/s41274-016-0149-4 10.1016/j.ifacol.2015.12.365 10.1016/j.enbuild.2017.07.043 10.1109/PES.2011.6039082 10.1007/s40903-015-0027-4 10.1016/j.enbuild.2016.12.026 10.1016/j.renene.2017.02.054 10.1109/TCE.2012.6227429 10.1016/j.jclepro.2017.04.174 10.1109/ISGTEurope.2012.6465806 10.1109/ICCEP.2013.6586999 10.1109/TSG.2013.2254506 10.1109/TSG.2012.2220385 10.1109/APPEEC.2010.5448730 10.1016/j.renene.2017.06.084 10.1016/j.enpol.2012.01.051 10.1016/j.energy.2016.02.166 10.1109/TSG.2014.2311122 10.1287/serv.1.1.1 10.1109/TSG.2010.2055903 10.1109/TSG.2012.2226065 10.1145/2487166.2487168 |
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| Keywords | Electrical load scheduling Dynamic pricing of electricity Customized prices Price function Electric battery In-house renewable generation |
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| SubjectTerms | Customized prices Dynamic pricing of electricity Electric battery Electrical load scheduling In-house renewable generation Price function |
| Title | A two-part dynamic pricing policy for household electricity consumption scheduling with minimized expenditure |
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