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Chinese Journal of Management Science ›› 2026, Vol. 34 ›› Issue (10): 409-419.doi: 10.16381/j.cnki.issn1003-207x.2023.1540

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Integrated Pricing Strategy Based on Demand Side Management via Two Kinds of Time Slots

Zeyi Zhu, Yan Gao(), Xiaodong Ding   

  1. School of Management,University of Shanghai for Science and Technology,Shanghai 200093,China
  • Received:2023-09-30 Revised:2024-04-30 Online:2026-10-25 Published:2026-10-09
  • Contact: Yan Gao E-mail:gaoyan@usst.edu.cn

Abstract:

The real-time pricing in the smart grid can adjust the price dynamically according to the electricity demand, which guides the users to adjust the pattern of electricity consumption via price signals. It is one of the most direct methods, which balances electricity supply and demand and promotes the efficient use of energy. Real-time pricing method is based on single-time slot and multi-time slots by periods. Multi-time slots pricing determines the price of each time slot in a cycle in advance, and has the advantage of simultaneous interaction of global information in multiple time slots, which helps users to determine their electricity consumption plans in advance. Single-time slot pricing determines the price during each time slot and has the advantage of real-time information interaction, which enables users to adjust their energy utilization instantaneously in response to demand. However, single-time slot pricing tends to lead to peak and valley shifting, and multi-time slots pricing cannot adjust electricity consumption in real time. In order to avoid the drawbacks of using one pricing mechanism alone, an integrated pricing based on social welfare maximization model that characterizes both multi-time slots and single-time slot is established. The fossil energy generation is considered during multi-time slots pricing, and renewable energy generation and users’ behavioral uncertainty are considered during single-time slot pricing. In the implementation of the proposed pricing mechanism, the multi-time slots pricing problem is solved to determine the electricity price for each time slot before the cycle, then the single-time slot pricing problem considering the buying and selling of electricity between the users and the supply side is solved to determine the electricity price during each time slot. Wherein, the dual approach is utilized to solve the proposed multi-time slots pricing model and single-time slot pricing model, respectively. The simulation experiments validate the effectiveness of the proposed integrated pricing mechanism. It is concluded that: (i) Compared with the social welfare maximization model using single-time slot pricing or multi-time slots pricing, it improves social welfare significantly. (ii) Under integrated pricing mechanism, users can obtain the global information of electricity price and make the electricity plan in advance. Then, users adjust electricity consumption in real time. Thus, users can increase their electricity consumption utility, reduce the waste of electricity resources, and obtain greater welfare.

Key words: smart grid, demand side management, real-time pricing, social welfare maximization, time slot integrated, dual optimization

CLC Number: