Hierarchical Clustering Algorithm Based User Group Structure Segmentation Method

Identifying high-value customers and providing quality services are essential for the transformation and advancement of power grid enterprises. This paper highlights the strategies necessary for achieving this transformation. Utilizing the load data collected by the measurement system of the power supply company, we analyze the load characteristics of users in typical industries through cluster analysis, a data mining technique. The hierarchical clustering algorithm can effectively extract the local characteristics of the data, determine the power supply mode according to the nature of users' electricity consumption, determine their electricity price strategy according to the types of electricity consumption, and dynamically adjust and implement the optimal service strategy according to the behavior of users.