The design and optimization of the urban residential electricity packages for a load serving entity

Load serving entities (LSEs) purchase energy from markets and sell it to their customers. As a profit-seeking organization, the aim of the LSE is mainly to make the profit maximal. As the electricity market is liberated, consumers become active to participate in it and may decide to modify the profile of their demand to reduce their electricity costs, which affects strategies of LSEs. Hence, demand response (DR) needs to be considered in strategies of LSEs. In this paper, the elasticity is used to categorize customers. Moreover, electricity packages are designed for customers based on categories. Then the models of the urban residential electricity packages are built and optimized. Finally, four electricity packages are provided for customers, which contributes to customers in making choices based on their lifestyles. Numerical results of the four categories show that the urban residential electricity packages could give a strong incentive to electricity consumption and the profit of the LSE increases compared with the traditional electricity contract.