Robust Optimization Strategy for Residential User’s Electricity Price Score Coefficient Considering Response Uncertainty

Abstract

The current Chinese residential electricity prices are regulated by the government, which cannot well reflect the relationship between supply and demand, and have made it difficult to develop a more flexible price-based demand response mechanism. The proposal of electricity price score mechanism can well solve the problem of price control under such regulated market environment. However, due to the lack of considering users’ response uncertainty in the current design of electricity price score coefficient, the effect of the score mechanism is greatly reduced. Thus, a robust optimization strategy of electricity price score setup is proposed here considering the uncertainty of users’ response. Firstly, based on analyzing the load adjustable potential of residential users, the kernel density estimation method is used to calculate the load adjustable potential of group users, and then the users’ response characteristic model considering uncertainty is established based on the theory of consumer psychology. Secondly, a robust optimization model of electricity price score coefficient is constructed with the goal of minimizing expenditure cost to stimulate demand response program, solved by CPLEX. The numerical analysis verifies that the obtained price coefficient design strategy of the proposed method can mobilize the enthusiasm of residential users to participate in the interaction of the power grid. When the uncertainty of users’ response occurs, the power grid can reduce the peak-valley differential rate at the least cost, which is of great significance to improve the operational efficiency of power system, and alleviate power supply pressure, as well as to contribute to energy conservation and emission reduction in China.