Dynamic Pricing Strategy for Demand Response Management in Smart Grid

As per the flat tariff rates we have been utilising each and every electronic gadgets at the same cost per unit for the whole day, due to this we are not aware about the genuine price for the distribution and the generation of the electricity. The strategy of dynamic pricing is a key for this issue, in which a customer is charged with different rates contingent on the curve of demand response. Many of the latest studies which are related to the dynamic pricing of electricity are being limited to block rating where the price per unit for electricity increments or at times diminishes after utilizing a specific amount of electricity. Even though the electricity utilization of every customer is not equal, yet at the same time the effect of increasing cost because of load fluctuation in case of peak hours influences every customer to the same extent. So to overcome this we are recommending a different dynamic pricing modelling with the help of which the expanded cost would be shared with those consumers, who really take an interest in destabilizing curve of demand response, but not with those users, whose utilization of electricity is almost minimum or underneath normal.