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Influence of variable supply and load flexibility on Demand-Side Management

Demand-Side Management (DSM) refers to the shaping of the electrical load to improve the fit with the supply side [1]. One way to achieve this is to confront the user with a dynamic financial incentive to influence the demand. In previous work (see [2]) a crude reactive pricing algorithm has been shown to shave the peak of the aggregated load by over 25%. In this paper this approach is extended and evaluated in more detail. The algorithm is extended to cover scenarios where the supply is no longer fixed; its performance is investigated under varying conditions such as the percentage of the flexible load as well as the extent of the load's flexibility. The expected benefit of applying the algorithm to real world scenarios is predicted, allowing for an informed decision on whether or not to employ it in specific situations and under which pricing conditions.