How to implement real-time pricing in China? A solution based on power credit mechanism

In view of real-time pricing implementation difficulties and certain deficiencies of the time-of-use price in China, a novel virtual real-time electricity pricing scheme is proposed based on power credit incentive program in this paper, which can help to achieve better results for peak load shifting than the conventional time-of-use price-based scheme. In addition, it can also work as virtual real-time pricing mechanism. The aim of this study from the perspective of load scheduling of residential appliance device, focuses on the optimization of cost and willingness to change of the user, and further examining the feasibility and effectiveness of electricity pricing mechanism in detail. Finally, the application prospect of the electricity pricing mechanism in demand response is evaluated and the performance of the model in our study established with illustration from our simulation results.