An Exploratory Analysis of Kitakyushu Residential Customer Response to Dynamic Electricity Pricing

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AbstractThis paper introduces the characteristic of Japanese dynamic pricing model, meanwhile, summarizes the results from an exploratory analysis of about 200 households that took part in dynamic price experiment in Kitakyushu, Japan. Using hourly load data collected from smart meter, we find statistically load reduction for participants during the DP time block. With the incentive of different levels of DP, the peak demand reduction ratio changes from 6% to 14% which proved that residential customers have the potential to respond to variable price signals. In addition, we also discussed the effect of dynamic pricing which influenced by temperature. The result indicates that the size of load reduction is the largest during the extreme temperature. This paper contributes to the implementation of dynamic pricing and provides a good experience to other countries.

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