Standardised dynamic pricing model for cloud services in
smart cities

 

A smart city is a new concept of cities that apply the new
generation of information communication technologies (Smart ICT), such as the
Internet-of-Things, cloud computing, big data, to improve and manage the
planning, construction and smart services of cities.  The utility power system in smart City
is  highly  energy 
and  resource  efficient, it relies on integrated and
resilient  resource  systems, 
as  well  as 
insight-driven   and  innovative 
approaches  to  strategic 
planning. The application of information and communication technologies is
commonly a means to meet these objectives.

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There are many challenges and opportunities of emerging and
future smart grids and smart cities, which can be addressed by means of cloud
computing. For instance, dynamic energy pricing, i.e., shifting the potential
peak demand to a different time when the energy price is lower. A cloud-based
platform will be instrumental in minimizing network complexity and providing
cost-effective solutions as well as increasing the utilization of energy. Smart
grid and smart city services/applications may be deployed in various ways, such
as in a private cloud, community cloud, or hybrid cloud.

 

As reported by the Energy Information Administration, the
energy provided by fossil fuels accounts for 62% of the total global energy
consumption, 38% worldwide energy generation comes from renewables energies.
Furthermore, the worldwide energy consumption is expected to increase 82% in
the following decade.

The utility power system in smart City  is  
increasingly  powered  by 
renewable  energy   sources. As these renewable energy sources
might be highly intermittent in nature and often uncontrollable, they could
produce a significant challenge for the reliability of the grid. It is
therefore a  challenging  task 
to  guarantee  that 
the  power  demand, 
load and power generation remain balanced;

 

As a step into this direction, we study dynamic pricing strategies
for brokering, which will be implemented on the cloud service, based upon data
collected from smart meters to help the users make the best selection with the
energy resources from different energy retailers. In this dynamic pricing
scheme, more  than  one 
energy  retailer is considered and
for each retailer, the price  for  the users 
can  be  adjusted 
dynamically  depending on the
current energy demand  and  prices 
offered  by the other retailers in
each region; in order to achieve the highest individual or combined revenue.
The users’ energy demand changes 
with  the  price 
to  maximize  their 
individual  utility, and  users 
might  choose  different 
retailers  based  on the 
provided  prices. The brokering
will choose the lowest cost of energy resources based on clients’ energy usage
demand in real time. Dynamic pricing aims at reducing the overall energy
consumption, the capacity of end use customers to change their electricity
usage  from  their 
normal  or  current 
consumption  patterns  in 
response  to  market 
signals is   mainly   about  
shifting   consumption   to  
a   different   point  
in  time.

 

Furthermore, during the analysis, we have come to know that
standardization in the area of metering and billing lags behind research.
Therefore, in our study we focus on researching the market requirements for
cloud service metering and billing to highlight and determine gaps between
industry practices, market requirements and current technical standardisation
efforts at ISO/IEC JTC 1/SC 38 committee in order to  pave the way to establishing standards in
metering indicators and billing principles for cloud services this while
keeping in mind privacy and data protection risks and regulations enforced by
ISO JT1/SC 27 and EU General Data Protection Regulation effective May 2018.

 

Key words: Smart Cities, Cloud Computing Dynamic Pricing,
Technical Standardisation,  Utility Power
System

 

This research was conducted in collaboration
with ILNAS – the Institut Luxembourgeois de la Normalisation, de
l’Accréditation, de la Sécurité et qualité des produits et services (ILNAS)
under the authority of the Minister of Economy, Luxembourg.

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