IEEE Transactions on Industry Applications · 2008 · 15 citations · 6 references
Natural ResourcesBusiness EconomicsEconomicsEnergy EconomicsEnergy ManagementPricing StrategyDemand ResponseDemand-side ManagementElectricity Load ManagementEnergy PricingEnergy TariffsPower Sector EconomicsDemand Response BehaviorDemand Response EconomicsDemand-side EconomicsElectricity Tariff StructuresPeak Electricity Demand ReductionPeak Load DemandPrice-based Demand ResponseTime-of-use Tariffs
The demand response in the off-peak period is proposed to reduce the cost of the expensive fuel for the Taiwan Power Company (Taipower). For the lack of base-load generation units, Taipower has to meet a certain portion of the system demand by mobilizing LNG-fired and oil-fired units, even in the off-peak period. Taipower adopts the time-of-use pricing policy, which charges a pretty low rate in the off-peak period, for the purpose of load management. However, the difference between the fuel cost and income per kilowatthour incurs a huge deficit to Taipower. This paper proposes a competitive model based on the demand response in order to restrain or reduce expensive fuel usage in the off-peak period. By providing a compensation tariff, the deficit can be reduced, and Taipower can run profitably.
6