REVIEW OF DYNAMIC PRICING PROGRAMS AND EVALUATING THEIR EFFECT ON DEMAND RESPONSE

Demand response can provide benefits in a variety of ways, such as reducing the need for peak capacity, improving system reliability, reducing the consumption of energy, and reducing externality costs. To change consumers consumption patterns such as moving consumption from peak hours to off peak hours or consuming more in off peak hours and less in peak hours we must provide incentives to manage energy use more efficiently and enable consumers to save money and use demand side programs. The paper outlines pricing programs and evaluates the cost effectiveness of advanced metering infrastructure deployments. Also we evaluate the effect of dynamic pricing programs on demand response.