How Smart and Green? A Simulation Model of Demand Cost Perception in the Electricity Market

Nowadays energy demand is an issue regarding the vitality of cities and the welfare of citizens. The exponential growth of the cities and the consumers' demand obliged the energy producer to find a modern solution to overcome these problems. The solution was found in decentralised structures all connected through the Internet and capable of allowing all actors in the system to interact together. In this study, the effect on the smart grid's energy demand of different numbers of consumers, their behaviour and the energy price variations will be discussed. A few consumers' behaviours will be illustrated and taken into account, how they react to the energy provider's price schemes, impelling them into making a decision on whether to shift or not their demand according to their characteristic parameters and show how their expenditures and incomes for the electricity market operator change.