Skip to main content

Research Repository

Advanced Search

An Optimal Differential Pricing in Smart Grid Based on Customer Segmentation

Meng, F.; Kazemtabrizi, B.; Zeng, X.J.; Dent, C.

An Optimal Differential Pricing in Smart Grid Based on Customer Segmentation Thumbnail


Authors

F. Meng

X.J. Zeng

C. Dent



Abstract

In smart grids, dynamic pricing (e.g., time-of-use pricing (ToU), real-time pricing (RTP)) has recently attracted enormous interests from both academia and industry. Although differential pricing has been widely used in retail sectors such as broadband and mobile phone services to offer ‘right prices’ to ‘right’ customers, existing research in smart grid retail pricing mainly focus on an uniform dynamic pricing (i.e. all customers are offered at the same prices). In this paper, we take the first step towards an optimal differential pricing for smart grid retail pricing based on customer segmentation. A differential pricing framework is firstly presented which consists of customer segmentation analysis, and a two-level optimal differential pricing problem between the retailer and each customer group. At the upper level, a pricing optimization problem is formulated for the retailer while at the lower-level, an optimal tariff selection problem is formulated for each customer group (e.g., price sensitive, price insensitive) to minimize their bills. By comparing with a benchmarked uniform ToU, simulation results confirmed the feasibility and effectiveness of our proposed optimal differential pricing strategy.

Citation

Meng, F., Kazemtabrizi, B., Zeng, X., & Dent, C. (2017). An Optimal Differential Pricing in Smart Grid Based on Customer Segmentation. In 2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe) : Torino, Italy, 26-29 September 2017 ; conference proceedings (1-6). https://doi.org/10.1109/isgteurope.2017.8260255

Conference Name 7th IEEE International Conference on Innovative Smart Grid Technologies “ISGT Europe 2017”.
Conference Location Torino, Italy
Start Date Sep 26, 2017
End Date Sep 29, 2017
Acceptance Date Apr 29, 2017
Online Publication Date Jan 18, 2018
Publication Date Sep 29, 2017
Deposit Date May 16, 2017
Publicly Available Date May 30, 2017
Publisher Institute of Electrical and Electronics Engineers
Pages 1-6
Book Title 2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe) : Torino, Italy, 26-29 September 2017 ; conference proceedings.
ISBN 9781538619544
DOI https://doi.org/10.1109/isgteurope.2017.8260255

Files

Accepted Conference Proceeding (291 Kb)
PDF

Copyright Statement
© 2017 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.







You might also like



Downloadable Citations