Impact of TOU rates on distribution load shapes in a smart grid with PHEV penetration

Abstract

A smart grid introduces new opportunities and challenges to electric power grids especially at the distribution level. Advanced metering infrastructure (AMI) and information portals enable customers to have access to real-time electricity pricing information, thus facilitating customer participation in demand response. The objective of this paper is to analyze the impact of time-of-use (TOU) electricity rates on customer behaviors in a residential community. Research findings indicate that the TOU rate can be properly designed to reduce the peak demand even when PHEVs are present. This result is insensitive to seasons, PHEV penetration levels and PHEV charging strategies. It is expected that this paper can give policy makers, electric utilities and other relevant stakeholders an insight into the impacts of various TOU pricing schemes on distribution load shapes in a smart grid with PHEV penetration.