Smart Home Vision: Simulating Private Customer Reaction to Variable Electricity Prices

A structural change in the energy sector is being driven by increasing oil prices and climate protection efforts. Renewable energy sources will replace fossil fired power plants and contribute a large share of future electricity production. Compared to fossil power plants, many renewable generators are decentralized, small units, that have a volatile output. These different characteristics conflict with the current power grid control infrastructure.

Demand Side Management is an important part of future 'Smart Grids'. We present a model that simulates the changes in load consumption of a household when customers face varying prices for electricity instead of a flat tariff.

Randomly distributed starting points of different household appliances model private customer electricity consumption under a flat tariff. Distribution of the appliances is based on statistical data. Intelligent household device agents simulate private customer electricity consumption in a smart home. Customer preferences and the price for electricity determine the use of appliances.

This simulation will produce results on the impact of time-based demand-response programs in a ‘Smart Grid’. Different pricing schemes for private electricity customers can be tested. These results can guide the selection of an appropriate pricing scheme for household electricity customers.