A time-of-use based electricity price package mechanism in retail market considering consumers’ diversity

In the deregulated retail market, consumers should have more right of choice for paying for their energy demand. This paper focuses on the design of electricity price package mechanism in retail market considering the demand elasticity of consumers. An optimal price package mechanism is proposed to incentivize consumers for peak-clipping/valley-filling. Consumers are able to choose the appropriate one from a set of price packages, each of which consists of specific time-of-use energy price and maximum-demand price. A numerical case study has shown the usefulness and effectiveness of the proposed mechanism.