Smart Pricing for Smart Grid

  • Zhimin Wang

Student thesis: Doctoral ThesisPhD


Flat-rate electricity tariffs in Great Britain, which have no price variation throughout a day or a year, have been ongoing for decades to recover the cost of energy production and delivery. However, this type of electricity tariff has little incentives to encourage customers to modify their demands to suit the condition of the power supply system. Hence, it is challenged in the new smart grid environment, where demand side responses have important roles to play to encourage conventional energy efficiency and support the integration of renewable generation. In order to accommodate this new environment, the investigations of smart tariff designs and their applications in demand side response are therefore carried out from three main aspects.In a high carbon system dominated by controllable fossil generation where energy peaks typically coincide with those of networks, smart tariffs are developed by statistically tracking dynamic energy price variation tendencies and categorising real-time prices to form time-of-use patterns that capture the most significant price variations without compromising too much accuracy in total energy revenue from customers. In a low carbon system where energy peaks and network peaks may not be in synchronism at all times, additional complications will be raised when developing smart tariffs and optimal demand side response strategies. A new concept is developed in this thesis to allow shared utilization of energy storage between customers and distributed network operators to respond to conflicting energy price and network conditions. In this work, two operation models of storage share are implemented. One is fixed share between customers and network operators regardless of network conditions, and the other is dynamic share that storage capacity utilized by network operator changes with network condition. The consequential system benefit in terms of energy cost reduction and network cost saving is evaluated and converted into per unit cost reduction in the energy bill.Addition to technical solution in the form of storage, the benefit from household demand shifting, such as shifting wet appliances, in the presence of smart tariffs is evaluated. The value of household demand shifting is quantified as an equivalent storage capacity for the investigation of complementarity between technical and social interventions.
Date of Award23 Jun 2014
Original languageEnglish
Awarding Institution
  • University of Bath
SupervisorFurong Li (Supervisor) & Raj Aggarwal (Supervisor)

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