Lecture 10: Temporal Price Discrimination Flashcards
explain how is the smart meter installations increasing the efficeincy in the energy suppliers
Smart meters provides data on real time , thus eliminiating the standart load profiles for the energy suppliers and giving them a better basis for their buyings in the wholasale market bcs of their improved estimation of demand. Thus leads to an increasing efficiency and decreasing costs
What is an effective load an how does it calculated?
Effective load deviates from estimates SLP and is the real load which get anticipated.
What is the difference between the Smart Meters and normal conventional Meters
Smart meters transmit data through Gateways to the Meter Data Management
Conventional Meters should be first get read by the field personal and there is operational costs due to that and should than be given into the system either manually or automaticly
Which Smart Meter Feedback types are there ?
direct and indirect Feedback
in the direct
What is the difference between load shifting and load shaving
in load shifting the peak load is ditributed to the other times through out the day. The overall load stays the same
In load shaving the peak load is just cancelled and not reallocated
Which Advanced pricing approaches for electricity are there?
Temporal / dynamic pricing
price depends on time of consumption
Locational pricing
price depends on location of consumption
Power pricing
price depends on power
Service Pricing
not electricity is priced but the corresponding service (e.g. heating or charging
of EV)
Which two main categories of Demand Response programs are there and which one is on our focus?
Incentive based programs
price based programs
we focus on pbp
What are the Incentive Based Programs (IBP) for Demand Response and which classical approachs does it contain
in the incentive based DRP particiapting customers recieve payments, either in form of discount or credits
in the classical approach there is the Direct load control where the utility can remotly shut down
the equipment, or Interruptible, Curtailable, Programs where participants Participants are asked to reduce
their load to predefined values
What are the Incentive Based Programs (IBP) for Demand Response and which Market based programs does it contain.
Market-based programs are also classified under IBP. The main idea is that there is an Payment based on load reduction during critical conditions. The diffrence to the classical ones is here there is an active bidding process in the markets.
4 Types
*
Demand bidding
Consumers bid their load reduction in a wholesale market
*
Emergency DR
Incentives to reduce load during emergency conditions
*
Capacity Market Programs
Participants have to reduce their load after getting a day ahead notice of
events
*
Ancillary services
Customers can bid load curtailment in the spot market as operating reserve
We focus on the Price Based programs of DRP instead of the Incentive based programs of DRP.
Which 5 PBP did we learned about and briefly summarize them.
Time of Use (TOU)
Different electricity prices for different blocks of time (e.g. peak and off peak)
The aim is to reflect the average cost of electricity during different periods
Critical Peak Pricing (CPP)
Called during contingencies or high wholesale electricity prices (limited amount of hours or days per year) so actually really similar to TOU but here we have 500% of increase but in less then 10 days in year
Extreme Day Pricing (EDP)
Similar to CPP, but price is effective for the whole 24h of the extreme day
Extreme Day CPP (ED CPP)
CPP rates during extreme days for peak and off peak periods
**Real Time Pricing (RTP)
**Hourly fluctuating prices which reflect the real cost of electricity in wholesale market
When is there a shift in the demand?
Change of factors other than price affecting the demand for a good leads to an shift in demand
Electricty has a very …. price elasticity
low, around 0,1 to 0,3
How is the (usual) static pricing is like and what changes in Time of use prices? How about the Real time Pricing
in an usual static pricing the customers has a fixed kwh price and they pay it in the end of the year by detecting the consumption by reading the Meter data. The utilities makes assumptions socalles Standart load profiles and the devaitons should than be compensated by them. because the price is always same there is no incentive to shift any demand.
In the Time of Use price rates increase above the flat rate during pre set daily peak periods and lower cost at during off peak hours. They are however not dynamic in that they are not reflecting the whole sale market
Real time Pricing is the purest form of the dynamic pricing because it linked to the wholesale prices on an hourly basis, which gets provided in the day ahaed basis.
