Study on the Tier Tap Determining of Basic Residential Electricity Consumption Based on Demand Response

A method to determine the tier tap of basic electricity consumption based on the demand response is proposed in this paper. Firstly, the joint electricity pricing of Time-of-Use (TOU) & Tiered is introduced. A computable demand response model is developed to analyze the demand and expenditure variation caused by the joint pricing with the utilization of the different price elasticity of the basic and comfort consumption. Then with the object of maximizing the demand reduction, an optimization model is built to determine the tier tap of basic consumption. Lastly, according to the TOU price in Shanghai and the scheme of Tiered Pricing to be executed in some regions in the latter year, a joint pricing is assumed to estimate the demand response and provide some suggestion for basic tier tap determining.