Segmented energy tariff design for flattening load demand profile

Abstract

In this paper, a segmented energy tariff design is proposed to incentivize consumers to flatten load demand. This energy tariff focuses on consumption levels instead of consumption periods. Energy storage is an effective strategy to help to maintain the imported energy from grid below the threshold without affecting the comfort of energy consuming. From economic perspective, both battery size and segmented energy prices should be considered to minimize the total energy cost. For the considered home battery system, when the threshold value and battery size is larger than 0.45 kWh and 3 kWh respectively, the imported energy from grid is zero. When the price ratio is larger than 9, it is beneficial for consumers to response to load flattening with battery to reduce energy cost. It is recommended that policy makers or electricity regulators take the tariff incentive into account to make it attractive for consumers to respond to load flattening.