Integration of price anticipation and self-elasticity for purchase decisions and planning in price directed electricity markets

This paper places itself in the realm of price directed electricity markets. Consumers purchase electricity by responding to price signals. Therefore, they have to make real time decisions regarding the amount of electricity that will be purchased. However, decision making is a complex and risky process. Decisions should be made having in mind to reduce the cost while satisfying the electricity needs. Towards that end, the integration of price anticipation with self-elasticity factoring is presented in this paper. The integration framework aims at providing a framework for optimal decision making in price directed electricity markets. Self-elasticity factoring expresses the comfort zone of the market participant, while price anticipation allows planning of purchases in the near future. The presented framework is tested on a set of day ahead electricity load data taken from the area of New England Area. The result of the demonstration case shows the potentiality of the framework for decision making and consumption planning in price directed electricity markets.