Menu-Pricing Method for Controllable Load Based on Discrete Choice Model

doi:10.3969/j.issn.1000-7229.2016.01.017

Abstract

Abstract:

The reasonable demand-side price is the key factor to promote and guide the users demand response. Considering geographical dispersion and large number of controllable load in difference demand response of marginal cost and consumption preferences, this paper presents a controllable load menu-pricing method based on discrete choice theory. Considering the different preferences of the user in a wide variety of electricity price, this method establishes the discrete choice model for users menu price, which is based on the three factors: the marginal cost of load, the load reduction and the compensation price, and calculates the discrete choice probability of users menu price. Then we take the price of demand response and the load reduction for the menu options, the minimum cost of system power supply as the target, and construct the menu-pricing model for controllable load which can reflect the different consumption preference of users. Finally, through numerical example, we analyze the power supply cost and users total load reduction with or without discrete choice, as well as the sensitivity of affecting users selection factor. The results show that menu-pricing considering discrete choice can effectively reflect the users preferences for different electricity price, and induce its intrinsic demand elasticity, so that the menu price can meet the users consumption preference, promote the user to participate in and cut more load, save the system power supply cost, and realize the optimal allocation of power resources.

Key words: demand response, consumption preference, discrete choice, multinomial Logit model, menu-pricing

CLC Number:

DANG Qian，ZHANG Huafeng，MA Yanhong，CUI Liang，ZHANG Jun. Menu-Pricing Method for Controllable Load Based on Discrete Choice Model[J]. Electric Power Construction, 2016, 37(1): 110-118.

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