Smart Cities pp 71-103 | Cite as

Pricing Mechanisms for Energy Management in Smart Cities

  • Anulipt Chandan
  • Vidyasagar Potdar
  • Champa Nandi
Part of the Computer Communications and Networks book series (CCN)


The power supply network, Smart Grid, is one of the most critical infrastructures which help to realize the vision of Smart Cities. Smart Grids can provide a reliable and quality power supply with high efficiency. However, the demand for electricity fluctuates throughout the day, and this variable demand creates power instability leading to an unreliable power supply. The inherent difficulties can be addressed to a certain extent with demand-side management (DSM) that can play a vital role in managing the demand in Smart Grids and Microgrids, by implementing dynamic pricing using Smart Meters. This chapter reviews relevant challenges and recent developments in the area of dynamic electricity pricing by investigating the following pricing mechanisms: Time-of-Use Pricing, Real-Time Pricing, Critical Peak Pricing, Day-Ahead Pricing, Cost Reflective Pricing, Seasonal Pricing, and Peak Time Rebate Pricing. We also discuss four real-world case studies of different pricing mechanisms adopted in various parts of the world. This chapter concludes with suggestions for future research opportunities in this field.


Smart Grids Renewable energy sources Energy measurement Energy management Demand-side management Energy conservation Load management Energy efficiency Energy storage Distributed energy resources Appliance scheduling 


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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Anulipt Chandan
    • 1
  • Vidyasagar Potdar
    • 2
  • Champa Nandi
    • 3
  1. 1.National Institute of TechnologyAgartalaIndia
  2. 2.School of Information SystemsCurtin UniversityPerthAustralia
  3. 3.Tripura UniversityAgartalaIndia

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