A Clustered Small Community Based Novel Electricity Trade Model for Consumers

Abstract

The economic development of Bangladesh is increasing day by day where electricity plays as a vital infrastructural input for economic development. In modern life, electricity is the flexible form of energy and also part of critical resource. The extensive demand for electricity can be observed in all economics, households and companies. There are such important factors such as industrialization, extensive urbanization, population growth, rising standard of living and even the modernization of the agricultural sector which are solely responsible for the extensive demand of electricity. Furthermore, the extensive use of electronic home appliance and gadgets has caused a significant increase in household electricity usage, leading to difficulties such as rising energy expenses and intricate pricing systems. This problem is especially noticeable in nations such as Bangladesh, where the increasing middle class increases demand. The existing price system, which includes progressive tariff tiers, unfairly impacts those with lesser incomes, and the fluctuating energy usage during different seasons adds further financial pressure. To tackle these difficulties, it is necessary to employ inventive approaches, such as reevaluating pricing models, investigating energy-saving technologies, and executing community-driven projects. The proposed solution entails integrating a billing system within a time series forecasting framework to create an innovative electricity trading model. The main objective is to minimize the expenses associated with energy consumption while maintaining the same power usage level, providing an opportunity for consumers with lower consumption to generate cash. The primary objective of this strategic approach is to mitigate economic hardships, enhance equity, and cultivate reciprocal advantages within the energy sector. The essential participants in this endeavor encompass users/consumers, distributors, a smart meter system, and a consolidated billing system. The primary focus is to uphold privacy, instill trust in billing, and ensure meter reading and measurement security. This establishes a fair and safe framework for electricity trading, promoting a sustainable energy future.