Renewable Electricity Real-Time Pricing: Enhancing Grid's Stability Through Demand Side Management

Demand-side management (DSM) has become one of the most efficient tools to face challenges of renewable electricity integration, especially using dynamic pricing (DP) in order to translate generation variations into corresponding pricing signals and hence motivate the consumers to adapt their consumption accordingly. In this paper, a real-time pricing (RTP) of renewable electricity is proposed considering two utility functions, one related to the grid (U
G
) and the other related to the user (Uu), to obtain, through a backward induction optimization, an actual load that follows, as much as possible, the power generation curve of the renewable energy sources (RES), thus allowing the grid to maintain its stability while sparing storage capacity. A numerical study case of a remote island in Zhoushan, China, shows that this strategy has a satisfying performance in achieving the research main goal with a reduction of up to 70% in storage need.