International Journal of Information Technology & Computer Science ( IJITCS )
In a smart grid, it becomes easier for electricity consumers to automatically control energy consumption by energy management system along with consumption preference. This paper proposes an operations model reflecting consumers’ dynamically changing preference that they want to change energy consumption over dynamically changing electricity prices. Also, we investigate the impact of consumers’ behavior or characteristics on the energy consumption. Based on the proposed model, we found that consumers reduce or increase energy consumption when prices go up or down, respectively. Obviously, this result could be expected by the demand response in a smart grid to reduce peak time demand by controlling prices. However, more important thing is that sometimes too high consumers’ sensitivity could incur another peak consumption during off-peak time period, if energy prices are not determined in real time but given exogenously or in advance. .
: Energy Management System; Consumer Behavior; Price Elasticity; Smart Grid
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