IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1701.02646.html
   My bibliography  Save this paper

Economic information from Smart Meter: Nexus Between Demand Profile and Electricity Retail Price Between Demand Profile and Electricity Retail Price

Author

Listed:
  • Yang Yu
  • Guangyi Liu
  • Wendong Zhu
  • Fei Wang
  • Bin Shu
  • Kai Zhang
  • Ram Rajagopal
  • Nicolas Astier

Abstract

In this paper, we demonstrate that a consumer's marginal system impact is only determined by their demand profile rather than their demand level. Demand profile clustering is identical to cluster consumers according to their marginal impacts on system costs. A profile-based uniform-rate price is economically efficient as real-time pricing. We develop a criteria system to evaluate the economic efficiency of an implemented retail price scheme in a distribution system by comparing profile clustering and daily-average clustering. Our criteria system can examine the extent of a retail price scheme's inefficiency even without information about the distribution system's daily cost structure. We analyze data from a real distribution system in China. In this system, targeting each consumer's high-impact days is more efficient than target high-impact consumers.

Suggested Citation

  • Yang Yu & Guangyi Liu & Wendong Zhu & Fei Wang & Bin Shu & Kai Zhang & Ram Rajagopal & Nicolas Astier, 2016. "Economic information from Smart Meter: Nexus Between Demand Profile and Electricity Retail Price Between Demand Profile and Electricity Retail Price," Papers 1701.02646, arXiv.org.
    • Handle: RePEc:arx:papers:1701.02646
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1701.02646
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul Joskow & Jean Tirole, 2007. "Reliability and competitive electricity markets," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 60-84, March.
    2. Hu, Yuan, 2007. "Implementation of voluntary agreements for energy efficiency in China," Energy Policy, Elsevier, vol. 35(11), pages 5541-5548, November.
    3. Verma, Anoop & Asadi, Ali & Yang, Kai & Tyagi, Satish, 2015. "A data-driven approach to identify households with plug-in electrical vehicles (PEVs)," Applied Energy, Elsevier, vol. 160(C), pages 71-79.
    4. Wang, Jianhui & Bloyd, Cary N. & Hu, Zhaoguang & Tan, Zhongfu, 2010. "Demand response in China," Energy, Elsevier, vol. 35(4), pages 1592-1597.
    5. Steven L. Puller & Jeremy West, 2013. "Efficient Retail Pricing in Electricity and Natural Gas Markets," American Economic Review, American Economic Association, vol. 103(3), pages 350-355, May.
    6. Andrews-Speed, Philip, 2009. "China's ongoing energy efficiency drive: Origins, progress and prospects," Energy Policy, Elsevier, vol. 37(4), pages 1331-1344, April.
    7. Strbac, Goran, 2008. "Demand side management: Benefits and challenges," Energy Policy, Elsevier, vol. 36(12), pages 4419-4426, December.
    8. Zhou, Nan & Levine, Mark D. & Price, Lynn, 2010. "Overview of current energy-efficiency policies in China," Energy Policy, Elsevier, vol. 38(11), pages 6439-6452, November.
    9. Beckel, Christian & Sadamori, Leyna & Staake, Thorsten & Santini, Silvia, 2014. "Revealing household characteristics from smart meter data," Energy, Elsevier, vol. 78(C), pages 397-410.
    10. Rhodes, Joshua D. & Cole, Wesley J. & Upshaw, Charles R. & Edgar, Thomas F. & Webber, Michael E., 2014. "Clustering analysis of residential electricity demand profiles," Applied Energy, Elsevier, vol. 135(C), pages 461-471.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lo, Kevin & Wang, Mark Y., 2013. "Energy conservation in China’s Twelfth Five-Year Plan period: Continuation or paradigm shift?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 499-507.
    2. Wang, Y. & Mauree, D. & Sun, Q. & Lin, H. & Scartezzini, J.L. & Wennersten, R., 2020. "A review of approaches to low-carbon transition of high-rise residential buildings in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    3. Kahrl, Fredrich & Williams, Jim & Jianhua, Ding & Junfeng, Hu, 2011. "Challenges to China's transition to a low carbon electricity system," Energy Policy, Elsevier, vol. 39(7), pages 4032-4041, July.
    4. Wen, Hanguan & Liu, Xiufeng & Yang, Ming & Lei, Bo & Xu, Cheng & Chen, Zhe, 2024. "A novel approach for identifying customer groups for personalized demand-side management services using household socio-demographic data," Energy, Elsevier, vol. 286(C).
    5. Zhu, Junming & Chertow, Marian R., 2017. "Business Strategy Under Institutional Constraints: Evidence From China's Energy Efficiency Regulations," Ecological Economics, Elsevier, vol. 135(C), pages 10-21.
    6. Ovaere, Marten & Heylen, Evelyn & Proost, Stef & Deconinck, Geert & Van Hertem, Dirk, 2019. "How detailed value of lost load data impact power system reliability decisions," Energy Policy, Elsevier, vol. 132(C), pages 1064-1075.
    7. Tahir, Muhammad Faizan & Chen, Haoyong & Khan, Asad & Javed, Muhammad Sufyan & Cheema, Khalid Mehmood & Laraik, Noman Ali, 2020. "Significance of demand response in light of current pilot projects in China and devising a problem solution for future advancements," Technology in Society, Elsevier, vol. 63(C).
    8. Zhao, Xiaofan & Li, Huimin & Wu, Liang & Qi, Ye, 2014. "Implementation of energy-saving policies in China: How local governments assisted industrial enterprises in achieving energy-saving targets," Energy Policy, Elsevier, vol. 66(C), pages 170-184.
    9. Lau, E.T. & Yang, Q. & Stokes, L. & Taylor, G.A. & Forbes, A.B. & Clarkson, P. & Wright, P.S. & Livina, V.N., 2015. "Carbon savings in the UK demand side response programmes," Applied Energy, Elsevier, vol. 159(C), pages 478-489.
    10. Zhang, Jiefeng & Bai, Zhipeng & Chang, Victor W.C. & Ding, Xiao, 2011. "Balancing BEC and IAQ in civil buildings during rapid urbanization in China: Regulation, interplay and collaboration," Energy Policy, Elsevier, vol. 39(10), pages 5778-5790, October.
    11. Zhang, Hao, 2019. "Antinomic policy-making under the fragmented authoritarianism: Regulating China’s electricity sector through the energy-climate-environment dimension," Energy Policy, Elsevier, vol. 128(C), pages 162-169.
    12. Hu, Yu & Monroy, Carlos Rodríguez, 2012. "Chinese energy and climate policies after Durban: Save the Kyoto Protocol," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 3243-3250.
    13. Pina, André & Silva, Carlos & Ferrão, Paulo, 2012. "The impact of demand side management strategies in the penetration of renewable electricity," Energy, Elsevier, vol. 41(1), pages 128-137.
    14. Jiang, Lei & Folmer, Henk & Ji, Minhe, 2014. "The drivers of energy intensity in China: A spatial panel data approach," China Economic Review, Elsevier, vol. 31(C), pages 351-360.
    15. Jun Dong & Huijuan Huo & Sen Guo, 2016. "Demand Side Management Performance Evaluation for Commercial Enterprises," Sustainability, MDPI, vol. 8(10), pages 1-23, October.
    16. Satre-Meloy, Aven & Diakonova, Marina & Grünewald, Philipp, 2020. "Cluster analysis and prediction of residential peak demand profiles using occupant activity data," Applied Energy, Elsevier, vol. 260(C).
    17. Jacqueline Nicole Adams & Zsófia Deme Bélafi & Miklós Horváth & János Balázs Kocsis & Tamás Csoknyai, 2021. "How Smart Meter Data Analysis Can Support Understanding the Impact of Occupant Behavior on Building Energy Performance: A Comprehensive Review," Energies, MDPI, vol. 14(9), pages 1-23, April.
    18. Li, Ke & Lin, Boqiang, 2014. "The nonlinear impacts of industrial structure on China's energy intensity," Energy, Elsevier, vol. 69(C), pages 258-265.
    19. Kong, Xiangfei & Lu, Shilei & Wu, Yong, 2012. "A review of building energy efficiency in China during “Eleventh Five-Year Plan” period," Energy Policy, Elsevier, vol. 41(C), pages 624-635.
    20. Konstantin Hopf & Mariya Sodenkamp & Thorsten Staake, 2018. "Enhancing energy efficiency in the residential sector with smart meter data analytics," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(4), pages 453-473, November.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:1701.02646. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.