IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v395y2025ics0306261925009560.html

Dynamics of user cooperation and response under electricity price sensitivity: A case study of accurate incentive scheduling

Author

Listed:
  • L.I., Bin
  • ZHOU, Zhaofan
  • Y.I., Chenle
  • H.U., Junhao
  • Chen, Songsong
  • Zhang, Haijing

Abstract

With the rapid growth of new energy capacity, power grid systems are adopting innovative strategies to increase the consumption of clean energy. One such strategy is to designate midday as a low electricity price valley, incentivizing users to shift their consumption to this period, thus optimizing demand distribution and promoting the efficient use of new energy. However, challenges arise when extreme weather events (such as reduced sunlight and wind speed) occur within a quarter, significantly reducing the output of new energy. To mitigate this, the power grid often relies on costly energy storage and incentives to encourage users to adjust their consumption behavior. However, a limited understanding of user willingness to respond has led to increased operational costs and reduced user satisfaction in demand response programs. This paper proposes a user-collaborative, grid-precise dynamic incentive optimization scheduling algorithm based on electricity price sensitivity analysis. The algorithm first analyses users' price sensitivity from two dimensions: adjustment ratio and load quantity, classifying them into low, medium, and high sensitivity groups. It then establishes a Stackelberg game framework integrated with a user collaboration mechanism for grid dynamic incentives. To validate the effectiveness of the proposed algorithm, three comparative algorithms are established. The results show that, compared to other algorithms, the proposed approach significantly reduces both grid and user costs by 20–30 %, while narrowing the cost disparity between the two by nearly 10 %. Furthermore, three scenarios are evaluated: intra-quarter extreme weather, intra-quarter normal weather, and inter-quarter normal weather. The analysis of peak-valley price differences and new energy consumption rates demonstrates that, within a peak-valley price difference range of 30–45 %, the new energy consumption rate exceeds 90 %. These results confirm the robustness and superior performance of the proposed algorithm across various scenarios.

Suggested Citation

  • L.I., Bin & ZHOU, Zhaofan & Y.I., Chenle & H.U., Junhao & Chen, Songsong & Zhang, Haijing, 2025. "Dynamics of user cooperation and response under electricity price sensitivity: A case study of accurate incentive scheduling," Applied Energy, Elsevier, vol. 395(C).
  • Handle: RePEc:eee:appene:v:395:y:2025:i:c:s0306261925009560
    DOI: 10.1016/j.apenergy.2025.126226
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261925009560
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2025.126226?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Zheng, Xuemei & Li, Cao & Fang, Xingming & Zhang, Ning, 2021. "Price sensitivity and consumers’ support for renewable energy in China," Energy, Elsevier, vol. 222(C).
    2. Roman Korab & Marcin Połomski & Tomasz Naczyński, 2024. "Optimal Scheduling of Energy Storage and Shiftable Loads in Grid-Connected Residential Buildings with Photovoltaic Micro-Installations," Energies, MDPI, vol. 17(21), pages 1-23, October.
    3. Duan, Jiandong & Tian, Qinxing & Liu, Fan & Xia, Yerui & Gao, Qi, 2024. "Optimal scheduling strategy with integrated demand response based on stepped incentive mechanism for integrated electricity-gas energy system," Energy, Elsevier, vol. 313(C).
    4. Li, Li & Wang, Jing & Zhong, Xiaoyi & Lin, Jian & Wu, Nianyuan & Zhang, Zhihui & Meng, Chao & Wang, Xiaonan & Shah, Nilay & Brandon, Nigel & Xie, Shan & Zhao, Yingru, 2022. "Combined multi-objective optimization and agent-based modeling for a 100% renewable island energy system considering power-to-gas technology and extreme weather conditions," Applied Energy, Elsevier, vol. 308(C).
    5. Ma, Yixiang & Yu, Lean & Zhang, Guoxing & Lu, Zhiming & Wu, Jiaqian, 2023. "Source-load uncertainty-based multi-objective multi-energy complementary optimal scheduling," Renewable Energy, Elsevier, vol. 219(P1).
    6. Zhou, Siyu & Han, Yang & Zalhaf, Amr S. & Chen, Shuheng & Zhou, Te & Yang, Ping & Elboshy, Bahaa, 2023. "A novel multi-objective scheduling model for grid-connected hydro-wind-PV-battery complementary system under extreme weather: A case study of Sichuan, China," Renewable Energy, Elsevier, vol. 212(C), pages 818-833.
    7. Zhang, Zhonglian & Yang, Xiaohui & Li, Moxuan & Deng, Fuwei & Xiao, Riying & Mei, Linghao & Hu, Zecheng, 2023. "Optimal configuration of improved dynamic carbon neutral energy systems based on hybrid energy storage and market incentives," Energy, Elsevier, vol. 284(C).
    Full references (including those not matched with items on IDEAS)

    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. Chen, Longxiang & Luo, Ze & Jing, Rui & Ye, Kai & Xie, Meina, 2025. "Two-stage planning of integrated energy systems under copula models informed cascading extreme weather uncertainty," Applied Energy, Elsevier, vol. 380(C).
    2. Huang, Yanni & Li, Tianran & Yao, Yunting & Ma, Gang & Li, Xingshuo & Yu, Xiuyong & Xu, Wenjun & Wang, Jinran, 2025. "IGDT-based two-layer optimization of trading strategies in multi-energy markets," Energy, Elsevier, vol. 333(C).
    3. Han, Fengwu & Zeng, Jianfeng & Lin, Junjie & Zhao, Yunlong & Gao, Chong, 2023. "A stochastic hierarchical optimization and revenue allocation approach for multi-regional integrated energy systems based on cooperative games," Applied Energy, Elsevier, vol. 350(C).
    4. Cao, Wenqiang & Yu, Junqi & Ru, Chengyi & Wang, Meng & Wang, Ke, 2025. "A two-stage distributionally robust optimization operation scheduling model for solar PT-PV systems based on integrated load consumption prediction," Energy, Elsevier, vol. 332(C).
    5. Zhao, Yunfei & Zhang, Huachen, 2025. "Extreme weather, financial losses, and corporate carbon reduction efficiency," International Review of Economics & Finance, Elsevier, vol. 102(C).
    6. Gao, Xianhui & Wang, Sheng & Sun, Ying & Zhai, Junyi & Chen, Nan & Zhang, Xiao-Ping, 2024. "Low-carbon energy scheduling for integrated energy systems considering offshore wind power hydrogen production and dynamic hydrogen doping strategy," Applied Energy, Elsevier, vol. 376(PA).
    7. Wu, Tianyu & Han, Fengwu & Zhao, Yunlong & Yu, Zishuo, 2025. "A decarbonization-oriented and uncertainty-aware energy management strategy for multi-district integrated energy systems with fair peer-to-peer trading," Energy, Elsevier, vol. 323(C).
    8. Sun, Yaling & Che, Yanbo & Guo, Xiao & Zhang, Shangyuan, 2025. "Optimal modelling and analysis of DG-GC joint multilateral transaction in energy blockchain environment: from the REP perspective," Energy, Elsevier, vol. 335(C).
    9. Lai, Chunyang & Kazemtabrizi, Behzad, 2025. "A novel two-stage framework to improve the flexibility of grid connected wind-hydro power system in real-time operation," Applied Energy, Elsevier, vol. 396(C).
    10. Benjamin Kwaku Nimako & Silvia Carpitella & Andrea Menapace, 2024. "Novel Multi-Criteria Decision Analysis Based on Performance Indicators for Urban Energy System Planning," Energies, MDPI, vol. 17(20), pages 1-18, October.
    11. Víctor Sanz i López & Ramon Costa-Castelló & Carles Batlle, 2022. "Literature Review of Energy Management in Combined Heat and Power Systems Based on High-Temperature Proton Exchange Membrane Fuel Cells for Residential Comfort Applications," Energies, MDPI, vol. 15(17), pages 1-22, September.
    12. Guangxiu Yu & Ping Zhou & Zhenzhong Zhao & Yiheng Liang & Weijun Wang, 2025. "Energy Storage Configuration Optimization of a Wind–Solar–Thermal Complementary Energy System, Considering Source-Load Uncertainty," Energies, MDPI, vol. 18(15), pages 1-20, July.
    13. Wei, Guomeng & Qu, Zhiguo & Zhang, Jianfei & Chen, Weiwen, 2025. "Techno-economic analysis of zero/negative carbon electricity-hydrogen-water hybrid system with renewable energy in remote island," Applied Energy, Elsevier, vol. 381(C).
    14. Cheng, Xiong & Wan, Shixing & Zhengfeng, Bao & Wang, Lei & Li, Wenwu & Li, Xianshan & Zhong, Hao, 2025. "Credible capacity gain identification method of peak-shaving scheduling of cascade hydro-wind-solar complementary system," Renewable Energy, Elsevier, vol. 248(C).
    15. Duan, Jiandong & Gao, Qi & Xia, Yerui & Tian, Qinxing & Qin, Bo, 2024. "MMD-DRO based economic dispatching considering flexible reserve provision from concentrated solar power plant," Energy, Elsevier, vol. 308(C).
    16. Chang, Miguel & Lund, Henrik & Thellufsen, Jakob Zinck & Østergaard, Poul Alberg, 2023. "Perspectives on purpose-driven coupling of energy system models," Energy, Elsevier, vol. 265(C).
    17. Jiang, Rui & Wu, Peng & Song, Yongze & Wu, Chengke & Wang, Peng & Zhong, Yun, 2022. "Factors influencing the adoption of renewable energy in the U.S. residential sector: An optimal parameters-based geographical detector approach," Renewable Energy, Elsevier, vol. 201(P1), pages 450-461.
    18. Shen, Xiaojun & Li, Xingyi & Yuan, Jiahai & Jin, Yu, 2022. "A hydrogen-based zero-carbon microgrid demonstration in renewable-rich remote areas: System design and economic feasibility," Applied Energy, Elsevier, vol. 326(C).
    19. Shi, Jiatong & Guo, Yangying & Wang, Sen & Yu, Xinyi & Jiang, Qianyu & Xu, Weidong & Yan, Yamin & Chen, Yujie & Zhang, Hongyu & Wang, Bohong, 2024. "An optimisation method for planning and operating nearshore island power and natural gas energy systems," Energy, Elsevier, vol. 308(C).
    20. Yang, Yu & Liu, Zhiqiang & Xie, Nan & Wang, Jiaqiang & Cui, Yanping & Agbodjan, Yawovi Souley, 2023. "Multi-criteria optimization of multi-energy complementary systems considering reliability, economic and environmental effects," Energy, Elsevier, vol. 269(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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:eee:appene:v:395:y:2025:i:c:s0306261925009560. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    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.