Calculation method for electricity price and rebate level in demand response programs

Hirotaka Takano, Naohiro Yoshida, Hiroshi Asano, Aya Hagishima, Nguyen Duc Tuyen

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)


Demand response programs (DRs) can be implemented with less investment costs than those in power plants or facilities and enable us to control power demand. Therefore, they are highly expected as an efficient option for power supply–demand-balancing operations. On the other hand, DRs bring new difficulties on how to evaluate the cooperation of consumers and to decide electricity prices or rebate levels with reflecting its results. This paper presents a theoretical approach that calculates electricity prices and rebate levels in DRs based on the framework of social welfare maximization. In the authors’ proposal, the DR-originated changes in the utility functions of power suppliers and consumers are used to set a guide for DR requests. Moreover, optimal electricity prices and rebate levels are defined from the standpoint of minimal burden in DRs. Through numerical simulations and discussion on their results, the validity of the authors’ proposal is verified.

Original languageEnglish
Article number6871
JournalApplied Sciences (Switzerland)
Issue number15
Publication statusPublished - Aug 1 2021

All Science Journal Classification (ASJC) codes

  • General Materials Science
  • Instrumentation
  • General Engineering
  • Process Chemistry and Technology
  • Computer Science Applications
  • Fluid Flow and Transfer Processes


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