A dynamic pricing model for price responsive electricity consumers in a smart community

Abstract

This paper considers a day-ahead coordination problem of electricity consumptions and supplies in a community. The agents involved are three typical types of user groups and a load serving entity as the coordinator. The instrument for coordination is the dynamic pricing drawing on the consumers' responsiveness to the price. The pricing is derived by a complementarity-based model. An example demonstrates that consumers participate in enhancing energy efficiency of the community in line with their own preferences.