Research on Tiered Electricity Pricing to Address Cross-Subsidies Based on a Nonlinear Demand Function

The problem of cross-subsidy in my country's electricity prices is particularly prominent and needs to be solved urgently in terms of fairness and economic efficiency. Reasonable tiered electricity prices can improve the current situation of cross-subsidy by increasing block electricity prices, while also improving the efficiency of electricity utilization and alleviating the pressure on energy supply. However, in the research and analysis of cross-subsidy, most of the linear demand functions are used. Based on the previous work, this paper makes two innovative attempts: (1) Based on the price elasticity differences of users in different classes, the linear demand function is expanded to an actual nonlinear demand function; (2) The user satisfaction model [1] and the welfare change model [2] are combined to construct a two-step optimization model to determine the optimal tiered electricity quantity and optimal electricity price of the tiered electricity price. In the design of the scheme, the impact of the change in tiered electricity quantity on the electricity price ratio is fully considered. In the process of adjusting the electricity prices of each tier, the tiered electricity quantity is adjusted to form a dynamic tiered electricity price adjustment scheme. The survey data of Chengdu, Sichuan Province in 2015 was used for example analysis. For this data set, the social welfare can be increased by 1.1833 million yuan throughout the year. (Abstract)

Authors

Institutions

Publication Details

Published
2024-11-22
DOI
https://doi.org/10.1109/sgee64306.2024.10865930
Primary Topic
Energy, Environment, and Transportation Policies
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Research on Tiered Electricity Pricing to Address Cross-Subsidies Based on a Nonlinear Demand Function

Zhao Shurong, Zizhe Wang, Shaogang Chen
Energy, Environment, and Transportation Policies
article

Research on Tiered Electricity Pricing to Address Cross-Subsidies Based on a Nonlinear Demand Function

Zhao Shurong, Zizhe Wang, Shaogang Chen
article en

Abstract

The problem of cross-subsidy in my country's electricity prices is particularly prominent and needs to be solved urgently in terms of fairness and economic efficiency. Reasonable tiered electricity prices can improve the current situation of cross-subsidy by increasing block electricity prices, while also improving the efficiency of electricity utilization and alleviating the pressure on energy supply. However, in the research and analysis of cross-subsidy, most of the linear demand functions are used. Based on the previous work, this paper makes two innovative attempts: (1) Based on the price elasticity differences of users in different classes, the linear demand function is expanded to an actual nonlinear demand function; (2) The user satisfaction model [1] and the welfare change model [2] are combined to construct a two-step optimization model to determine the optimal tiered electricity quantity and optimal electricity price of the tiered electricity price. In the design of the scheme, the impact of the change in tiered electricity quantity on the electricity price ratio is fully considered. In the process of adjusting the electricity prices of each tier, the tiered electricity quantity is adjusted to form a dynamic tiered electricity price adjustment scheme. The survey data of Chengdu, Sichuan Province in 2015 was used for example analysis. For this data set, the social welfare can be increased by 1.1833 million yuan throughout the year. (Abstract)

University of Electronic Science and Technology of China (CN)
Affordable and clean energy
Openalex Percentile: Top 84%
Energy, Environment, and Transportation Policies
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

Research on Tiered Electricity Pricing to Address Cross-Subsidies Based on a Nonlinear Demand Function — Zhao Shurong, Zizhe Wang, et al. · (2024) | TGRS Research Map | TGRS