Abstract: Aiming at the problem of power grid consumption structure in Hunan Province, the strategy of residential time-of-use electricity price scheme is proposed. Based on the residential electricity load data, the hierarchical clustering method is applied to divide the peak and valley periods of residents. Based on the heterogeneity of residential electricity demand, a demand price elasticity model is constructed, and on the basis of the current residential tiered electricity price policy, and with the goal of peak shaving and valley filling, a peak-valley time-of-use electricity price scheme for residents in Hunan Province is formulated.