Discrete elastic residential load response under variable pricing schemes

The introduction of variable pricing schemes has potential impacts for low voltage (LV) distribution networks with regards to load diversity and peak demand. Households are being equipped communication systems that give consumers a greater visibility of electricity prices facilitating greater market engagement and demand response. This paper presents a bottom-up load model coupled with a novel methodology to capture the discrete, bounded and uncertain consumer response to variable prices. The model uses Monte Carlo simulation techniques and price elasticity matrices to affect the probability of consumption, taking into account detailed consumer characteristics and appliance operation. The model is used to run a high resolution simulation of residential load response and to quantify behavioral changes using standard load metrics.