Demand response implementation into residential sector

In the current financial climate, focus on energy saving within the home has intensified by the desire to reduce costs. Western Australian residential electricity prices are expected to increase in 2016 and 2017. Between 2015 and 2017 the cost of supplying electricity is predicted to increase annually by 7% (Australian Energy Market Commission 2014, 57 -63). Fossil fuel savings, lowering average carbon emissions, as well as a permanent fall in electricity prices, are all significant incentives for the residential sector to look at different methods to reduce its power consumption. In Australia, the residential sector contributes about 25% of the total energy consumption but can incorporate up to 45% of Peak Demand. Pricing techniques and enabling technologies offer various possibilities for lowering Peak Demand by encouraging consumers to participate actively in power Demand Response. Our power networks are designed to meet Peak Demand to avoid equipment failure and service disruptions; this provides excellent opportunities for energy savings. Reducing Peak Demand will benefit consumers and suppliers by reducing power system costs. Suitable Pricing techniques can be applied in the residential sector, which could lead to consumer savings on electricity bills. Due to its complexity, the introduction and integration of pricing schemes into the different Energy Markets entails a comprehensive approach, including consideration of the functional energy performance, economic and environmental aspects, from conceptual design through to design realization. This report defines some enabling technologies such as smart meters, appliances, and tools which provide an opportunity for consumers to respond at short notice to a variety of signals. For example electricity price, by changing their energy consumption. The pricing techniques are divided into several basic pricing schemes and the effectiveness of each programme in Demand Response implementation into the household sector will be explored. The pricing tariffs are systematically examined, and proper cost analysis is performed to determine the practicality of implementation. Existing pricing schemes and pilot studies, smart appliances and meters, in-home displays and smart energy measuring devices are first introduced to estimate the suitability of the introduction of pricing schemes into the residential sector. Multiple scenarios with comparable pricing tariffs is recommended for a comprehensive evaluation of Demand Response implementation in the residential area and the selection of the optimal pricing technique. The proposed general pricing schemes are also applied to solving a real problem. Namely, the introduction of pricing schemes in two typical residential households in the suburbs of Thornlie and Ferndale in Perth, Western Australia to verify consumer shift in energy consumption behaviour