Novel diverse tariff scheme to enhance demand response

With the development of smart grid technology, price based demand response (PBDR) scheme will gain momentum and utilities are expected to enforce time dependent tariff. In near future, more and more domestic consumers will use different algorithms to schedule their flexible demand in order to reduce their energy costs. It is well known that with a single time of use tariff most of the customers schedule their load in the lower price intervals, hence their electricity cost will reduce but maximum demand (MD) on the power grid will not decrease. This paper proposes novel tariff scheme in which domestic consumers are split into “n” load groups and each group will have a separate tariff scheme. It is shown through simulations that with such a tariff scheme residential customers will be able to cut down their electricity bill while at the same time the utilities can bring down the maximum demand (MD).