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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Bibliographic Details
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
Online Access:Get full text
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Summary: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.
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ISSN:1949-3053
1949-3061
DOI:10.1109/TSG.2013.2241087