Designing pricing schemes based on progressive tariff and consumer grouping in migration to a future smart grid

Abstract

We study the design of pricing schemes for a group of consumers with smart meters (e.g., in a Greenfield area) who are connected through a gateway to a traditional electricity greed with a progressive tariff. Because the progressive tariff cannot take into account the time aspect of electricity demands, we apply it to consumers in both an individual and a group basis over a shorter time period, which can flatten the overall demand over time and thereby reduce peak load. This scenario for the coexistence of traditional and smart girds and the pricing schemes under this scenario can enable smooth migration to a future smart grid.