Cost-benefit comparison of a time-of-use tariff and real-time pricing of electricity associated with automated hvac load management strategies in banks across mainland Portugal

Abstract

​The gradual liberalization of the Portuguese energy market opens up new pathways in which further progress on demand response programs can be achieved. In light of this, the main objective of this paper is to evaluate the cost-benefit of introducing a Real-Time-Pricing (RTP) rate over the prevailing Time-Of-Use (TOU) tariff structure in 26 Normal Low Voltage (NLV) bank branches dispersed across Mainland Portugal. Additionally, the further impact of the association of RTP with Automated RTP-Responsive HVAC Load Management Strategies (ALMS) on cost savings is also examined. This study grouped the bank branches in 8 bioclimatic zones, to assess the influence exerted by geographic location on these results. Analyses were conducted using real granular electricity usage data from 2015, which were collected using an integrated power optimization software platform entitled ​Kiplo Smart Engine. Simulations reveal that the introduction of RTP reflects an annual electricity cost reduction of approximately 34% against the TOU tariff. Furthermore, the association of RTP with the proposed ALMS raised the annual electricity cost savings to up to 47%. In conclusion, it is expected that the unique nature of exploration of this study will foment discussions around the regulation of RTP programs to NLV consumers in Mainland Portugal.