Estimating the price elasticity of residential power demand using a bottom-up approach

Abstract

The paper aims to estimate the flexibility of a residential consumer group in price-based demand response. It develops a model to simulate consumers' responsiveness to time-varying prices. The model is applied for 500 households under three dynamic prices. The cost saving, change of load curve and price elasticities are computed and compared. Results show that Time-of-Use network tariffs bring more incentives and higher flexibility than the fixed tariff. The setting of peak periods and peak/off-peak price ratio in Time-of-Use tariffs affects the results. Their influence may also vary for different delay options.