Progressive time-differentiated peak pricing (PTPP) for aggregated air-conditioning load in demand response programs

Abstract

In China, the continuous increase of peak load has posed a significant challenge to the safety and stability of the power grid. By reasonable control of the air-conditioning (AC) load, peak load could be reduced, and balance could be achieved between supply and demand at lower cost without affecting customers' comfort. In this paper, a baseline model of the aggregated AC load is introduced and simplified to describe the relationship between temperature setpoint and AC power. The relationship between the electricity price and the temperature setpoint of AC is described based on the consumer psychology theory. Then, a new demand response project called progressive time-differentiated peak pricing for the AC load is designed. Finally, case study proves the feasibility of the optimal pricing mechanism proposed in this paper. The influences of different price shapes and different compositions of consumers on simulation results are analyzed, providing a theoretical basis and reference data for the practical implementation of progressive time-differentiated peak pricing.