Monetary impact of dynamic pricing and demand response on households: The winners and losers

Smart grid paradigm is hailed as the Holy Grail to manage the future electricity consumption in a sustainable manner, and demand response (DR) is a fundamental component in the realization of smart grids. However, DR requires active household participation and in the previous studies monetary benefit is identified as the main motivation for the households to participate. In this paper, we analyze DR on households in terms of the monetary impact. Smart meter data together with data about properties of households are used from 669 households. Dynamic pricing schema and DR model are proposed and utilized in simulations. Self-Organizing Maps (SOM) are applied to identify the household segments that are monetarily affected in the simulations.