Demand Response of Large-Scale General and Industrial Customer using In-House Pricing Model

Abstract

Demand response provides customer load reductions based on high market prices or system reliability conditions. One type of demand response, price-based program, induces customers to respond to changes in product rates. However, there are large-scale general and industrial customers that have difficulty changing their energy consumption patterns, even with rate changes, due to their electricity demands being commercial and industrial. This study proposes an in-house pricing model for large-scale general and industrial customers, particularly those with multiple business facilities, for self-regulating demand-side management and cost reduction. The in-house pricing model charges higher rates to customers with lower load factors by employing peak to off-peak ratios in order to reduce maximum demand at each facility. The proposed scheme has been applied to real world and its benefits are demonstrated through an example. Copyright © The Korean Institute of Electrical Engineers.