Implementation of an Economic Model for the Electricity Market Evaluation of Public Policies in Smart Grids

This paper presents the application of an economic model of the electricity market, representing economic flows the concessionaire and the consumer, which allows quantifying the key variables (consumption, price, income and quality) and establish a connection between the innovations made possible by the intelligent network environment (smart grids) on one hand, and parameters of social efficiency and sustainability on the other. The solution to this optimization problem leads to quantitative results for consumption, income, price or tariff for electricity and quality, items needed for evaluation of public policies, such as in the case of sustainable distributed generation incentives for low-income consumers.