Daily load response model to electricity price for customers

This paper presents a daily load response model based on the day ahead spot market prices. It can simulate an optimal expense saving on electricity based on the assumption that the total consumption is not changed. A mathematic formulation is described for the load reduction in potential hours by judging whether the actual price is higher than a certain response price. The model computation can be solved by determining a minimal natural number. Several parameters in the model can be set depending on actual conditions of different categories of load. A load response example for 30-category customers in a day is presented to show the application with the index to indicate the response benefit.