Application of fuzzy logic to electricity pricing in a deregulated environment

This paper presents a fuzzy systems approach to the real-time pricing of electric power-a tool that can be useful in economic planning that involves electricity consumption. The load in a power system network is not known in advance with certainty. This paper presents an approach to model load uncertainties at each bus using a fuzzy logic approach. The modelled fuzzy loads are applied to an optimal power flow-based spot pricing model to obtain fuzzy electricity rates which can be defuzzified to give crisp rates. The proposed approach is successfully tested on all-thermal 14 and 118 bus electric power networks.