Impact of Real-Time Pricing and Residential Load Automation on Distribution Systems

Title data

Arlt, Marie-Louise ; Chassin, David ; Rivetta, Claudio ; Sweeney, James:
Impact of Real-Time Pricing and Residential Load Automation on Distribution Systems.
In: Energy Policy. Vol. 184 (2024) . - 113906.
ISSN 0301-4215
DOI: https://doi.org/10.1016/j.enpol.2023.113906

Official URL:

Abstract in another language

Price-responsive electricity consumption can facilitate the efficient operations of power systems. In this paper, we study the impact of real-time pricing (RTP) and the automation of a major residential load – Heating, Ventilation, and Air Conditioning (HVAC) systems – on residential distribution systems. First, we deploy a simulation-based case study of 437 houses in Austin, Texas, which we calibrate based on real-world data. Second, we study the implications of switching from a fixed retail rate to RTP. We estimate aggregate welfare gains of 39 USD per customer and year. All customers contribute to the welfare gain, but not equally. Moreover, all customers benefit and benefits are higher for customers with electric heating, lower comfort preference, and lower thermal insulation. However, RTP and load automation can critically increase peak system load by more than 30%. Third, we study the introduction of a market-based demand management system under which the local RTP increases if congestion is present. In this case, for reasonable specifications, another 12% of welfare gains can be realized during operations. Moreover, optimal grid investment can be reduced. Our work informs policy makers by illustrating under which conditions load automation under RTP can be particularly beneficial.

Further data

Item Type:	Article in a journal
Refereed:	Yes
Keywords:	Load automation; Distribution systems; Local electricity markets; Demand management systems
Institutions of the University:	Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Junior Professor Wirtschaftsinformatik und vernetzte Energiespeicher > Junior Professor Wirtschaftsinformatik und vernetzte Energiespeicher - Juniorprof. Dr. Marie-Louise Arlt
Result of work at the UBT:	No
DDC Subjects:	300 Social sciences > 330 Economics
Date Deposited:	13 Aug 2024 07:32
Last Modified:	13 Aug 2024 08:36
URI:	https://eref.uni-bayreuth.de/id/eprint/90176