Time-of-Use Tariff Design Under Uncertainty in Price-Elasticities of Electricity Demand: A Stochastic Optimization Approach

Time-of-use (ToU) electricity tariffs are currently employed or considered for implementation in many jurisdictions around the world. In ToU modalities, a set of different tariffs for different hours of the day and/or seasons of the year is defined at the beginning of a given horizon, and then kept...

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Published in:	IEEE transactions on smart grid Vol. 4; no. 4; pp. 2285 - 2295
Main Authors:	de Sa Ferreira, Rafael, Barroso, Luiz Augusto, Rochinha Lino, Priscila, Carvalho, Martha Martins, Valenzuela, Paula
Format:	Journal Article
Language:	English
Published:	Piscataway IEEE 01.12.2013 The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subjects:	Cost function Demand response Economics Electricity electricity tariff design Load management Mathematical model quadratically constrained quadratic programming stochastic optimization time-of-use tariffs Uncertainty
ISSN:	1949-3053, 1949-3061
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Abstract	Time-of-use (ToU) electricity tariffs are currently employed or considered for implementation in many jurisdictions around the world. In ToU modalities, a set of different tariffs for different hours of the day and/or seasons of the year is defined at the beginning of a given horizon, and then kept constant until its end. While designing ToU tariffs, one of the most significant sources of uncertainty to be considered relates to price-elasticities of demand. We propose an approach for ToU tariff design based in quadratically constrained quadratic programming and stochastic optimization techniques, addressing these uncertainties and dealing with various aspects of tariff design from the point of view of the regulator/regulated utility.
AbstractList	Time-of-use (ToU) electricity tariffs are currently employed or considered for implementation in many jurisdictions around the world. In ToU modalities, a set of different tariffs for different hours of the day and/or seasons of the year is defined at the beginning of a given horizon, and then kept constant until its end. While designing ToU tariffs, one of the most significant sources of uncertainty to be considered relates to price-elasticities of demand. We propose an approach for ToU tariff design based in quadratically constrained quadratic programming and stochastic optimization techniques, addressing these uncertainties and dealing with various aspects of tariff design from the point of view of the regulator/regulated utility.
Author	Rochinha Lino, Priscila de Sa Ferreira, Rafael Carvalho, Martha Martins Barroso, Luiz Augusto Valenzuela, Paula
Author_xml	– sequence: 1 givenname: Rafael surname: de Sa Ferreira fullname: de Sa Ferreira, Rafael email: ferreira@psr-inc.com organization: PSR, Rio de Janeiro, Brazil – sequence: 2 givenname: Luiz Augusto surname: Barroso fullname: Barroso, Luiz Augusto email: luiz@psr-inc.com organization: PSR, Rio de Janeiro, Brazil – sequence: 3 givenname: Priscila surname: Rochinha Lino fullname: Rochinha Lino, Priscila email: priscila@psr-inc.com organization: PSR, Rio de Janeiro, Brazil – sequence: 4 givenname: Martha Martins surname: Carvalho fullname: Carvalho, Martha Martins email: martha@psr-inc.com organization: PSR, Rio de Janeiro, Brazil – sequence: 5 givenname: Paula surname: Valenzuela fullname: Valenzuela, Paula email: paula@psr-inc.com organization: PSR, Rio de Janeiro, Brazil
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SubjectTerms	Cost function Demand response Economics Electricity electricity tariff design Load management Mathematical model quadratically constrained quadratic programming stochastic optimization time-of-use tariffs Uncertainty
Title	Time-of-Use Tariff Design Under Uncertainty in Price-Elasticities of Electricity Demand: A Stochastic Optimization Approach
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