Over the past several years, the Taiwan Power Company has launched two smart pricing programs to assess the demand response of residential customers: the TOU (time-of-use) rate scheme and the DRI (demand reduction...Over the past several years, the Taiwan Power Company has launched two smart pricing programs to assess the demand response of residential customers: the TOU (time-of-use) rate scheme and the DRI (demand reduction incentive) scheme. This paper discusses these two programs and evaluates their respective performances. We develop an efficient approach based on marginal cost pricing to redesign the TOU rate scheme. In our finding, the TOU price levels could be revised to encourage more customers to participate by enlarging the price gap. Moreover, the DRI scheme can be further improved in order to reach an efficient win-win solution among customers, the utility and society. This can be achieved via a careful design of incentive tariff discounts to take account of the time-of-use or location-specific features of the power supply/demand condition.展开更多
文摘Over the past several years, the Taiwan Power Company has launched two smart pricing programs to assess the demand response of residential customers: the TOU (time-of-use) rate scheme and the DRI (demand reduction incentive) scheme. This paper discusses these two programs and evaluates their respective performances. We develop an efficient approach based on marginal cost pricing to redesign the TOU rate scheme. In our finding, the TOU price levels could be revised to encourage more customers to participate by enlarging the price gap. Moreover, the DRI scheme can be further improved in order to reach an efficient win-win solution among customers, the utility and society. This can be achieved via a careful design of incentive tariff discounts to take account of the time-of-use or location-specific features of the power supply/demand condition.