Designing pricing schemes based on progressive tariff and consumer grouping in migration to a future smart grid

TL;DR

This paper proposes a pricing scheme using progressive tariffs and consumer grouping to facilitate a smooth transition from traditional to smart grids, aiming to flatten demand and reduce peak loads.

Contribution

It introduces a novel pricing approach that combines progressive tariffs with consumer grouping to support grid migration and demand management.

Findings

Flattened demand curves observed in simulations

Reduced peak load during migration phase

Effective consumer grouping strategies identified

Abstract

We study the design of pricing schemes for a group of consumers with smart meters (e.g., in a Greenfield area) who are connected through a gateway to a traditional electricity greed with a progressive tariff. Because the progressive tariff cannot take into account the time aspect of electricity demands, we apply it to consumers in both an individual and a group basis over a shorter time period, which can flatten the overall demand over time and thereby reduce peak load. This scenario for the coexistence of traditional and smart girds and the pricing schemes under this scenario can enable smooth migration to a future smart grid.