Pricing Models for Customers in Active Houses with Load Management

Abstract: In the new residential area, called Stockholm Royal Seaport (SRS), the customers will be living in Active Houses with Load Management. This implies that some balancing of the grid is shifted from the production to the consumption. To give the customer incentives to participate in the Load Management, new more dynamic pricing models needs to be implemented. At the same time, profits for the investors are needed to motivate an implementation of similar residential areas. To achieve this, an analysis of the electricity markets and an implementation of dynamic pricing models in a MATLAB simulation are done. A proposed trading profit for the investors and possible cost reductions for customers have been derived from the modelling. The results show that the difference in costs between utilized and unutilized Load Management are small, only considering the dynamic pricing models, therefore compliments to these are discussed. The conclusion is therefore that the energy for the manageable loads should be charged separately. Another important conclusion is that a change of the Spotmarket is needed in order to create a more beneficial market for retailers with flexible customers.