Research on strategy of interruptible price and its cost-benefit model aimed at peak load shifting in Taiwan

Xin Xiao, Yuhui Zhou, Kaichung Cheng, Jiann-Fuh Chen, Ning Zhang, Yu Zhou

Research output: Contribution to journalArticle

18 Citations (Scopus)

Abstract

In order to provide practical paths for the promotion of energy price reform and combined power tariff, firstly, a pectination to the management system, market model and price system of Taiwan's electricity industry was made. The implementation strategy of interruptible price and its theory of peak load shifting were analyzed. Secondly, by introducing the theory of reliability benefits, the cost-benefit models of participants in interruptible price mechanism were proposed, based on analyzing the cost and benefit of power grid enterprises, power generation enterprises, power consumers and the government. The model and algorithm would be effectual to account the implementation benefits of interruptible price. Finally, a numerical example worked out a critical value which ensures that all the participants in interruptible price mechanism are profitable, according to an empirical analysis on the implementation benefits of Taiwan's interruptible price mechanism. And then, simulation analysis on the typical daily load curve of 153 industrial power consumers in Guangdong before and after actualizing interruptible price was made. The results demonstrate the feasibility and effectiveness of the proposed model, method and mechanism. The study shows that the implementation of interruptible price will be able to control the gap between peaks and valleys efficaciously, and bring economic and social benefits for the participants involved.

Original languageEnglish
Pages (from-to)3615-3622
Number of pages8
JournalZhongguo Dianji Gongcheng Xuebao/Proceedings of the Chinese Society of Electrical Engineering
Volume34
Issue number22
DOIs
Publication statusPublished - 2014 Aug 5

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Costs
Industry
Power generation
Electricity
Economics

All Science Journal Classification (ASJC) codes

  • Electrical and Electronic Engineering

Cite this

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title = "Research on strategy of interruptible price and its cost-benefit model aimed at peak load shifting in Taiwan",
abstract = "In order to provide practical paths for the promotion of energy price reform and combined power tariff, firstly, a pectination to the management system, market model and price system of Taiwan's electricity industry was made. The implementation strategy of interruptible price and its theory of peak load shifting were analyzed. Secondly, by introducing the theory of reliability benefits, the cost-benefit models of participants in interruptible price mechanism were proposed, based on analyzing the cost and benefit of power grid enterprises, power generation enterprises, power consumers and the government. The model and algorithm would be effectual to account the implementation benefits of interruptible price. Finally, a numerical example worked out a critical value which ensures that all the participants in interruptible price mechanism are profitable, according to an empirical analysis on the implementation benefits of Taiwan's interruptible price mechanism. And then, simulation analysis on the typical daily load curve of 153 industrial power consumers in Guangdong before and after actualizing interruptible price was made. The results demonstrate the feasibility and effectiveness of the proposed model, method and mechanism. The study shows that the implementation of interruptible price will be able to control the gap between peaks and valleys efficaciously, and bring economic and social benefits for the participants involved.",
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Research on strategy of interruptible price and its cost-benefit model aimed at peak load shifting in Taiwan. / Xiao, Xin; Zhou, Yuhui; Cheng, Kaichung; Chen, Jiann-Fuh; Zhang, Ning; Zhou, Yu.

In: Zhongguo Dianji Gongcheng Xuebao/Proceedings of the Chinese Society of Electrical Engineering, Vol. 34, No. 22, 05.08.2014, p. 3615-3622.

Research output: Contribution to journalArticle

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