Cost-benefit analysis of demand side management for residential and commercial buildings

• Main Author: Li, Song
• Other Authors: So Ping Lam
• Format: Final Year Project
• Language: English
• Published: 2014
• Subjects: DRNTU::Engineering
• Online Access: http://hdl.handle.net/10356/60347
• Institution: Nanyang Technological University

This report discusses the cost and benefit of demand side management for residential and commercial buildings. The purpose of demand side management is to encourage consumers to use less energy during peak hours, and adjust the electricity usage to off-peak periods. Microgrid is used to manage demand side, and solar photovoltaic (PV) is regarded as distributed generation within the microgrid. Simplified levelized cost of energy (SLCOE) is used to calculate price to charge for solar power, and Time-of-Use (ToU) pricing system is set to charge electricity consumers. The cost benefit of demand side management in the project is calculated and compared by the different consumers' bills. Time-of-Use pricing system makes the pricing of electric energy change every half an hour, according to the available PV generation and consumers' demand. Through changing the electricity price, the consumers' electricity usage patterns can be affected throughout a day to realize the purpose of demand side management. In this report, the current tariff is also introduced. Solar power is a renewable energy and environmental friendly energy. It can be predicted that more different other renewable generating sources will be used, and ToU pricing system will be integrated further, which can make demand side management more effective and economical.