Estimation of electricity elasticity for demand rates and load curve in Brazil

In this paper a methodology is proposed to calculate the elasticity between demand profile and electricity price. This elasticity is essential in the tariff design process because it is the first way to represent the customer response about the price signal. In this calculation it is necessary to identify, by using a clustering analysis algorithm, typical load profiles among the consumers. The elasticity is then obtained by comparing the load profiles with tariff variation between two consecutive years. The focus is on the relative variation (relation between peak and off peak periods) of tariff and load among the daily 24 hours. This approach captures the customer willingness to change the load profile due to tariff signals. Some real examples are shown using the network of a distribution company in Brazil. The results obtained show that the elasticity does exist and it is different for each customer in many activity sectors.