DYNAMIC PRICING, DEMAND RESPONSE, AND REGULATION IN ENERGY MARKETS: EVIDENCE FROM IRISH SMART METERING DATASET

摘要

Demand response will play an important role in electricity market. In much of the current literature the focus has been on estimating demand response for a given set of prices. Among demand response programmes, the dynamic pricing schemes are believed to have the greatest potentials on shifting and reducing peak load, thus not only reducing the financial risks for electricity retailers, but also benefiting consumers. In this paper we consider a different problem, namely how should a retailer decide the dynamic prices to maximize profit, while guaranteeing welfare gains for consumers.