Optimum Time of Use program proposal for Iranian Power Systems

Abstract

Recently implementation of Time of Use (TOU) program has been started in Iranian Power Systems by means of three tariffs digital meters. Time based rate Demand Response (DR) applicability, necessity of peak reduction (in peak hours) and increasing Load Factor (LF) are main reasons for installing the mentioned meters by Ministry of Energy. In this paper, TOU program is formulated based on economic models of DR by means of “price elasticity of demand” and “customer benefit function”. Different scenarios such as various electricity pricing, changing interval of peak, off-peak and low load periods, different customer sensitivity versus prices and the programs' potential have been studied. Peak day load curve of Iranian power grid in 2007 has been considered as the base case for all of the numerical studies. Also, peak reduction, energy consumption and customers' benefits and losses are analyzed. The optimum scenario is selected using “Strategy Success Index” (SSI) method.