Real-time Pricing Demand Response Scheme based on Marginal Emission Factors

This paper evaluates the potential of demand response programs in reducing greenhouse gas emissions in the energy sector. A novel day-ahead real-time pricing strategy, based on the expected marginal emission factors, is proposed to bring out the role of demand response in the ongoing decarbonization process. By linking electric energy price to marginal emission factors, customers are encouraged to shift the load to hours characterized by cleaner electric energy production. In this paper, an optimal scheduling framework, based on the proposed tariff, is used to simulate residential demand response. Simulations over a year quantitatively assess the proposed tariff's impact on load schedules, costs, and emissions. Finally, a comparison with the Time of Use tariff shows that the proposed pricing strategy is better both in terms of greater emission reduction and improved flexibility provision.