Study On Tiered Pricing Mechanism Based On Fuzzy Demand Response

In electricity grids, demand response (DR) is similar to dynamic demand mechanisms to manage customer consumption of electricity in response to supply conditions, for example, having electricity customers reduce or transform their consumption at critical times or in response to market prices. Tiered pricing mechanism divides the consumption into several tiers and increases the price to reduce the electrical, especially the luxury consumption. It is a tool that can boost the energy saving action by rising price. Tiered pricing has been implemented in Zhejiang, Sichuan, Fujian province etc., and the energy saving effect is confirmed. Some pricing methods according price discrimination and user-account coverage is based on the historical data, but they cannot be used to evaluate the possible response. Further on, optimization model based on demand response is built to determine the optimized price.However, as the uncertainty of the tier taps and the price elasticity, the accuracy of the optimized price is limited, and it is not fit for direct application, so the fuzzy theory is introduced, and the two key factors are represented as fuzzy section. With the probability density distribution of the consumption quantity, a fuzzy demand response model is built to analyze the response action of different users. Based on the fuzzy model, with the supposing tier taps, a price optimization models is built to decide the price variation of the three tiers in the paper. In the model, the object is to minimize the total electrical consumption with the following constraints: the profit of the power company increases in a limited range, the expenditure of the user increases in a low enough level. A series of satisfactory degree is applied to describe the constraint and a fuzzy section of price variation is gained. Lastly, a case is made to inspect the demand response range, the feasibility of the fuzzy demand response is shown and the energy saving performance is acceptable. The impact of the taps and the price elasticity to the price variation is analyzed.