A framework of consumer participation in the energy management of a smart community. (1st January 2014)

• Record Type: Journal Article
• Authors: Wang, Ti; Yamashita, Daiki; Yokoyama, Ryuichi; Niimura, Takahide; Takamori, Hiroshi
• Is Part Of: Asian journal of management science and applications. Volume 1:Number 3(2014)
• Page Start: 217
• Page End: 236
• Publication Date: 2014-01-01
• Subjects: consumer participation -- multiple periods -- demand response -- dynamic pricing -- load severing entity -- elasticity -- peak shift -- energy management -- smart community -- welfare maximisation; Management science -- Asia -- Periodicals; 658.009505
• Languages: English
• ISSNs: 2049-8683

Abstract

This study aims at modelling a dynamic price-based management of the electrical energy needs of a community. A smart community we envision operates a portfolio of power generating facilities including renewable sources. A challenge is how to meet volatile and fluctuating demands via the dynamic pricing. We design a framework to implement the principle: 'Let the consumer be part of the optimiser'. We attempt to capture consumers' responsiveness to the price reflecting the tightness of demand and supply balance. An example here of the model community demonstrates that the dynamic pricing via a complementarity-based modelling approach invites consumers to respond and participate in enhancing efficiency in line with their own preferences.