Non-linear optimization of business models in the electricity market

Abstract

Demand Response mechanisms and load control in the electricity market represent an important area of research at international level, and the market liberalization is opening new perspectives. This calls for the development of methodologies and tools that energy providers can use to define specific business models. In this work we develop an optimization model to provide recommendations on time-ofuse based prices to providers, taking into account some key factors of the customer and market behavior. We have tested our model on data from the Italian energy market, merging statistical census and population information. The main advantage of the model is that it provides a tool for sensitivity analysis, namely for understanding the impact of economical and behavioral parameters on the consumption profiles.