IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2020-04-18.html
   My bibliography  Save this article

Price-based Demand-side Management Model for Industrial and Large Electricity Consumers

Author

Listed:
  • Anatolyy Dzyuba

    (Department of Financial Technologies, Higher School of Economics and Management, South Ural State University, Chelyabinsk, Russia.)

  • Irina Solovyeva

    (Department of Financial Technologies, Higher School of Economics and Management, South Ural State University, Chelyabinsk, Russia.)

Abstract

This article discusses a price-based demand-side management model for industrial and large power consumers. We have analyzed various factors affecting the improvement of energy efficiency on a national scale as well as at the level of select enterprises and large electricity consumers and have concluded that demand-side management is one the key areas of increasing energy efficiency, with the price-based consumption as its core element. Using the Russian electricity market as a model example, this article investigates the formation of all cost components of the ultimate power price electricity, capacity and transmission services. Based on the results of the power cost component analysis, the article concludes that the price-based demand-side management can be applied to all price components and identifies areas and hours for optimal demand-side management in order to minimize the purchase price of electricity, while maintaining the aggregate demand. Based on the identified specifics, we have developed a price-based demand-side management model for industrial and large electricity consumers, taking into account the factors that limit the required management of the demand. The suggested model can be adapted for retail and wholesale electricity customers alike. Given that the Russian electricity market is largely similar to other power markets, such as Nord Pool, EPEX, Powernext, PJM, New England ISO, etc., the suggested management methods can be adapted for application in other countries. The article also discusses a communication strategy for the suggested model. The results of this research have high theoretical and practical importance and can be used in power purchase-related activities of industrial and other large consumers in any country where the electricity is priced according to market principles.

Suggested Citation

  • Anatolyy Dzyuba & Irina Solovyeva, 2020. "Price-based Demand-side Management Model for Industrial and Large Electricity Consumers," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 135-149.
    • Handle: RePEc:eco:journ2:2020-04-18
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/8982/5115
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/8982/5115
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shiraki, Hiroto & Nakamura, Shogo & Ashina, Shuichi & Honjo, Keita, 2016. "Estimating the hourly electricity profile of Japanese households – Coupling of engineering and statistical methods," Energy, Elsevier, vol. 114(C), pages 478-491.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammad Benny Alexandri & Supriyanto, 2021. "The Influence of Oil Price Volatility and Price Limit in Indonesia Energy Sub-Sector for the Period Before and After Covid-19," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 538-544.
    2. Lazar Gitelman & Mikhail Kozhevnikov & Yana Visotskaya, 2023. "Diversification as a Method of Ensuring the Sustainability of Energy Supply within the Energy Transition," Resources, MDPI, vol. 12(2), pages 1-19, February.
    3. Lazar D. Gitelman & Mikhail V. Kozhevnikov, 2023. "New Approaches to the Concept of Energy Transition in the Times of Energy Crisis," Sustainability, MDPI, vol. 15(6), pages 1-23, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anatolyy Dzyuba & Irina Solovyeva, 2020. "Demand-side Management in Territorial Entities based on their Volatility Trends," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 302-315.
    2. Zhou, Yuekuan & Cao, Sunliang & Hensen, Jan L.M. & Lund, Peter D., 2019. "Energy integration and interaction between buildings and vehicles: A state-of-the-art review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    3. Inoue, Nozomu & Matsumoto, Shigeru, 2019. "An examination of losses in energy savings after the Japanese Top Runner Program?," Energy Policy, Elsevier, vol. 124(C), pages 312-319.
    4. Laib, I. & Hamidat, A. & Haddadi, M. & Ramzan, N. & Olabi, A.G., 2018. "Study and simulation of the energy performances of a grid-connected PV system supplying a residential house in north of Algeria," Energy, Elsevier, vol. 152(C), pages 445-454.
    5. Oka, Kazutaka & Mizutani, Wataru & Ashina, Shuichi, 2020. "Climate change impacts on potential solar energy production: A study case in Fukushima, Japan," Renewable Energy, Elsevier, vol. 153(C), pages 249-260.
    6. Keita Honjo & Hiroto Shiraki & Shuichi Ashina, 2018. "Dynamic linear modeling of monthly electricity demand in Japan: Time variation of electricity conservation effect," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-23, April.
    7. Leithon, Johann & Werner, Stefan & Koivunen, Visa, 2020. "Cost-aware renewable energy management: Centralized vs. distributed generation," Renewable Energy, Elsevier, vol. 147(P1), pages 1164-1179.
    8. Francesco Mancini & Gianluigi Lo Basso & Livio De Santoli, 2019. "Energy Use in Residential Buildings: Characterisation for Identifying Flexible Loads by Means of a Questionnaire Survey," Energies, MDPI, vol. 12(11), pages 1-19, May.
    9. Yujiro Hirano & Tomohiko Ihara & Masayuki Hara & Keita Honjo, 2020. "Estimation of Direct and Indirect Household CO 2 Emissions in 49 Japanese Cities with Consideration of Regional Conditions," Sustainability, MDPI, vol. 12(11), pages 1-17, June.
    10. Liu, Yixing & Liu, Bo & Guo, Xiaoyu & Xu, Yiqiao & Ding, Zhengtao, 2023. "Household profile identification for retailers based on personalized federated learning," Energy, Elsevier, vol. 275(C).
    11. Akito Ozawa & Ryota Furusato & Yoshikuni Yoshida, 2017. "Tailor-Made Feedback to Reduce Residential Electricity Consumption: The Effect of Information on Household Lifestyle in Japan," Sustainability, MDPI, vol. 9(4), pages 1-23, March.

    More about this item

    Keywords

    demand-side management of electricity; price-dependent consumption; energy costs; operational efficiency; energy efficiency; production scheduling;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2020-04-18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.