Electricity dynamic tariffs scenario on medium voltage industrial customers to reduce production cost and peak load

Abstract

The pattern of energy consumption turned out to be a problem that affected generation capacity and production costs due to habitual patterns of activity that direct the customer consumption pattern which made the concept of dynamic electricity pricing is popular. Therefore, this paper examines the causal relationship of electricity bills and the base production cost to optimize plant and analyzing the elasticity of each tariffs. The research also make a direct surveys of industrial customer participate to make the grid more efficient by using demand side management.The research simulated the ratio off peak tariff with a peak tariff by 1: 2 which result bills increase 9% and requires a load shifting from peak and mid-peak consumption to off-peak at 28 % and 1% to make the consumer electricity bills same as before, then if the off peak tariff lowered to 30% and peak tariffs increased 26% make an average bills increase of 5% industrial customers. By mid-peak tariff increases of 50% and 26% increase in peak make an average bill increase of 33% and industrial customers in need to shift the peak and mid-peak to off-peak by 63% and 43% so that consumer electricity bills unchanged. From the results of direct surveys approximately 33% of customers who are willing to invest for a tool that could shift the load to the outside of the peak load where 30% of industrial customers are willing and have the opportunity to shift production costs if there are savings of 10% and 40%. From the research shown that mid-peak tariff elasticity is the most influential with the nominal-0.3% where elasticity tariff minus figures that industrial electricity tariffs is elastic and the cross elasticity is complementer. TOU scheme and demand side management can reduce the base production cost while total generation cost per day reached Rp. 955 Billion for a system and by this scheme can lower the total cost of the provision of 2.59% per day or Rp 10 Billion (Rp 3.645 Trillion/year).