A Research On Time-of-Use Price Policy Based On Demand Side Management In Hunan Province

Under the conditions of market economy, the tariff is an important leverage and economic incentives which affect the power structure and power consumption mode of users. Time-of-use (TOU) pricing, as the core measures of demand side management, not only regulate the demand behavior of power users directly, while also restricting the implementation of other demand side management measures.After more than20years of adjustment, optimization and perfection, a set of TOU pricing policy which consistent the needs of economic development, has been initially established in Hunan Province. Overall, the different periods of peak-to-valley TOU price policy not only helps to swap peak-to-valley electricity, improve system load, and reduce electricity costs for users, improve the electricity market share and reduce environmental pollution, and promote the rational allocation and effective use of resources to a certain extent, provide a strong guarantee for the systems safe operation, the social-economic development in Hunan Province. However, there are still some problems in the TOU price policy of Hunan Province. First, the settings for time-sharing tariff policy parameters (such as peak and valley periods division, TOU price ratio) lack of a scientific basis, the function of load shifting is not too obvious; Second, the effect of TOU price policy has lagged far behind, there are certain risks of the operation of the grid system; Third, there is no linkage mechanism between TOU pricing and grid tariff, it makes the TOU based on the demand side could not truly reflect the electricity supply and demand relationship and the cost of power generation, and it is difficult to achieve the interests of all sectors of power generation, transmission, supply, electricity balancing; Fourth, the implementation of TOU pricing policy is in narrow range, the adjusting function is limited.To give full play to the TOU tariff’s role, we should further optimization the TOU price policy in Hunan Province, base on the theory of DSM and the experience in the implementation of TOU pricing at home and abroad. Firstly, strengthen the electricity market survey, response curve fitting typical users daily load curve and demand based on understanding of the characteristics of its electricity demand, provide data to support the peak and valley periods divided and peak-valley electricity price ratio. Secondly, improve the dynamic TOU pricing mechanism compatible with the level of social-economic development in Hunan Province and the external market changes; enhance the fitness of TOU price policy and economic development. Thirdly, establish the TOU pricing grid tariff linkage mechanism; straighten out the relationship between the interests of the power generation, transmission and distribution and sale of electricity. Fourthly, on the basis of long-term follow-up study of user load curve and demand response of different industries, fitting a relatively reasonable the tariff adjustment range and consider industry differences in the peak and valley periods, formulation and implementation of TOU pricing policy according to the different industries. Fifthly, taking into account the interests of users, power grid and electricity enterprises, establish and improve a multi-channel compensation mechanism to avoid and control the risk of the operation of the power system.