Research Of User Response To Peak And Valley Time Price And Simulation Analysis

The aim of restructuring and introducing competition in electric power industries is to bring down the price and improve economic efficiency. However, the competition in electricity market is incomplete and inefficient. The incompleteness is inevitable because of the unique properties of electricity: non-storability in large-scale, instant supply-demand balance requirement and uncontrollable flow over lines. The inefficiency stems from several reasons such as exercise of market power, barriers to entry(high capital investment requirement), capital intensive production, various supply and demand conditions(technical constraints on supply side and short-term inelasticity of demand) and finally, prices that do not reflect the marginal cost of electricity. Especially in liberalized electricity market design, eliminating all inefficiencies in the market is almost impossible. With the development and perfect of electricity market and the gradual diversification of stakeholders, introducing the demand reponse to the electricity market, increasing the effect of demand side by using price signals and planning the resource of supply side and demand side synthetically is the inevitable demand of adapting to the development of electricity market.Three pricing theories based on demand reponse and their applications are firstly summarized in this paper. By comparing these theories, the TOU(time-of-use) scheme is chosen as the emphasis of this paper. Then, a basic net-work structure of electricity market is established in this paper and accoridng to it,we develop a month cycle model of demand response to peak and valley time price. In this paper, the lag of response to changing prices is given much consideration, moreover, lag elasticity and non-price effects are introduced to the model. Under the precondition that power-generation firms'income and user's demand are guaranteed, the model is coded in GAMS(General Algebraic Modeling System) and solved by the MCP solver, PATH, to get the TOU price and the power consumption at different conditions from which we can analyze the consumers'response to price. After that, fixed pricing model is introduced as a comparing object to analyze the effect of TOU scheme on social welfare. Meanwhile, this paper use Tayor series approximation to estimate the change in total for consumers. The primary goal of this thesis is to develop a policy analysis tool to predict the demand response to different pricing scheme and examine their influences on user in electricity markets.Lastly, by giving an analysis to the result of the study, the conclusions are summed as follows : firstly, TOU is a practical pricing scheme in shifting load; secondly, TOU can reduce the average price and increase the total power consumption compared to fixed pricing scheme; thirdly, the implementation of TOU will decrease consumer welfare but increase the net welfare of the society.