Comparative study between: time of use and real-time pricing using fuzzy technique

Abstract

Demand-side management (DSM) programmes in the industrial sector appear to be economically feasible due to the large controllable loads and relatively low costs per control point. Innovative electricity tariffs provide one of the most important DSM alternatives. As real-time pricing (RTP) is considered as management option which reflects the real cost of generating electricity to the end user, the electricity cost-saving potential of RTP through demand management is presented here. These variables include the installed power consumption capacity of the plant, the plant’s spare energy consumption capacity, and terms that describe the structure of the RTP tariff. Time of use (TOU) pricing compared with RTP is presented, can either be applied as load management (LM) programme or as incentive to drive the economics and the motivation to implement other types of LM programmes. TOU pricing also can be taken as a way for consumers to adjust the electricity consumption among different time axis in accordance with the cost of electricity. Here, the authors used the fully arithmetic fuzzy operations method which is applied where all the parameters and variables are characterised by triangular fuzzy numbers. A comparison of fuzzy arithmetic operations and ordinary operations is given.