Title: A framework of consumer participation in the energy management of a smart community
Authors: Ti Wang; Daiki Yamashita; Ryuichi Yokoyama; Takahide Niimura; Hiroshi Takamori
Addresses: Graduate School of Environment and Energy Engineering, WASEDA University, 55-705, 3-4-1 Okubo, Shinjuku-ku, Tokyo, 169-8555, Japan ' WASEDA University, 55-705, 3-4-1 Okubo, Shinjuku-ku, Tokyo, 169-8555, Japan ' Graduate School of Environment and Energy Engineering, WASEDA University, 55-705, 3-4-1 Okubo, Shinjuku-ku, Tokyo, 169-8555, Japan ' Faculty of Economics, Hosei University, Aihara 4342, Machida, Tokyo, 194-0298, Japan ' Finance Research Center, WASEDA University, Nihonbashi 1-chome Building 5F (COREDO Nihonbashi), 1-4-1 Nihonbashi, Chuo-ku, Tokyo 103-0027, Japan
Abstract: This study aims at modelling a dynamic price-based management of the electrical energy needs of a community. A smart community we envision operates a portfolio of power generating facilities including renewable sources. A challenge is how to meet volatile and fluctuating demands via the dynamic pricing. We design a framework to implement the principle: 'Let the consumer be part of the optimiser'. We attempt to capture consumers' responsiveness to the price reflecting the tightness of demand and supply balance. An example here of the model community demonstrates that the dynamic pricing via a complementarity-based modelling approach invites consumers to respond and participate in enhancing efficiency in line with their own preferences.
Keywords: consumer participation; multiple periods; demand response; dynamic pricing; load severing entity; elasticity; peak shift; energy management; smart communities; welfare maximisation; modelling; power generation.
Asian Journal of Management Science and Applications, 2014 Vol.1 No.3, pp.217 - 236
Received: 07 Mar 2013
Accepted: 20 Nov 2013
Published online: 28 Aug 2014 *