Dynamic Negawatt Demand Response Resource Modeling and Prioritizing in Power Markets (original) (raw)
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International Journal of Advanced Computer Science and Applications
In order to cope up the continuously increasing electric demand, Governments are forced to invest on Renewable Energy (RE) sources due to scarcity of fossil fuels (such as coal, gas and oil), high costs associated with it and emission of greenhouse gases. However, stochastic nature of RE sources like wind and PV threaten the reliability and stability of power system. Demand Response (DR) is an alternative solution to address the issues of economic constraints, integration challenges of RE, and dependency on fossil fuels. It is an aspect of Demand Side Management (DSM) that converts consumer's passive role to active by changing energy consumption pattern to reduce peak load. DR plays the role in deferring the investment on building new power plants, eliminating transmission losses and making the society green. This work analyzes initialization of different DR programs due to slumping technology costs and recognition of users' behavior in electricity market. Moreover, this paper points out the problems associated with DR and its project implementation across USA, China and developed cities of Europe.
An assessment of the effects of demand response in electricity markets
International Transactions on Electrical Energy Systems, 2012
In this paper, we present a method for assessing the impacts of demand-response (DR) programs on the load profile and the market prices, which can be recognized directly in terms of the demand elasticity (DE). The method simulates the effects of the DE arising from the DR programs on the liberalised wholesale electricity market. The influence of DR programs on the DE in the market is estimated, and then the impact of the DE on the load profile and the market prices is simulated using the day-ahead market-simulation tool by calculating a new market equilibrium point. The model is more suitable for initial planning stages of the DR programs and could be used to assess what levels of elasticity would be necessary to achieve the desired levels of DR and savings.
A summary of demand response in electricity markets
2008
This paper presents a summary of Demand Response (DR) in deregulated electricity markets. The definition and the classification of DR as well as potential benefits and associated cost components are presented. In addition, the most common indices used for DR measurement and evaluation are highlighted, and some utilities' experiences with different demand response programs are discussed. Finally, the effect of demand response in electricity prices is highlighted using a simulated case study.
Demand Response Programs Implementation in North American Markets – Technical Features Comparison
2017
The daily increment of the electricity demand in worldwide, obliges the electricity providers to hardly manage the relation between the generation and consumption. Therefore, the electricity operators should keep a gap between the total amount of generation and consumption in order to have not met the lack of energy generation, which leads to provide more energy resources. There is another solution to keep the gap between the amount of generation and consumption, which is defining such a program in specific periods for the demand side in order to reduce their consumption in response to the incentive paid by the electricity providers. This is defined as demand response program. These kinds of programs have been implemented worldwide, especially North America. Therefore, this paper provides a summarized report of the implemented DR programs on North American in 2015. More than 45 demand response programs have been surveyed and investigated. The main contribution of this paper is to co...
A review of the costs and benefits of demand response for electricity in the UK
Energy Policy, 2013
The recent policy discussion in the UK on the economic case for demand response (DR) 14 calls for a reflection on available evidence regarding its costs and benefits. Existing 15 studies tend to consider the size of investments and returns of certain forms of DR in 16 isolation and do not consider economic welfare effects. From review of existing studies, 17 policy documents, and some simple modelling of benefits of DR in providing reserve for 18 unforeseen events, we demonstrate that the economic case for DR in UK electricity 19 markets is positive. Consideration of economic welfare gains is provided. 20 Key words 21 Demand response, CBA 22 33 For this study, five of the most relevant papers and reports assessing potential current 34 and future costs and benefits of DR in the UK are brought together and estimates 35 converted to a broadly comparable form in order to investigate the economic case for 36 DR. 37 The main studies reviewed are as follows: DECC and Ofgem (2011a and 2011b), Ofgem 38 (2010), Strbac et al (2010), Strbac (2008) and Seebach et al (2009). These illustrative 39 analyses inform our survey of costs and benefits. Where possible, the concept of net 40 welfare gain is used to distinguish between investment costs (e.g. installing smart 41 meters) and DR programme returns (e.g. electricity aggregators' profits or consumer 42 savings etc.) on the one hand, and societal costs (e.g. system level upgrades) and 43 benefits (e.g. reductions in interruptions) on the other hand.
2001
The restructuring of regional electricity markets in the US has been accompanied by numerous problems, including generation capacity shortages, transmission congestion, wholesale price volatility, and reduced system reliability. These problems have created significant new opportunities for technologies and business approaches that allow load serving entities and other aggregators, to control and manage the load patterns of their wholesale or retail end-users. These technologies and business approaches for manipulating end-user load shapes are known as Load Management or, more recently, Demand Responsive programs. Lawrence Berkeley National Laboratory (LBNL) is conducting case studies on innovative demand responsive programs and presents preliminary results for five case studies in this paper. These case studies illustrate the diversity of market participants and range of technologies and business approaches and focus on key program elements such as target markets, market segmentation and participation results; pricing scheme; dispatch and coordination; measurement, verification, and settlement; and operational results where available. or business approach, diversity of market players in traditional and competitive electricity markets, and type of demand response program (see Table 1). Overview of Selected Programs Bonneville Power Administration Utility Motivation: Bonneville Power Administration's (BPA) Power Business Line is transitioning its 1999-2000 Demand Exchange Pilot Program into a full-scale, system-wide offering. The program provides needed flexibility as BPA operators seek to optimize four operating objectives-least-cost, reliability, fish & wildlife management, and energy savings. Program Design: The Demand Exchange, or DEMX, is an internet-based auction site where participants are alerted to real-time, day ahead, and two-day-ahead pricing and then can post their willingness to voluntarily curtail loads at a given price (Gilbert, 2000). The BPA version of the DEMX offering has two parts-a Voluntary Curtailment Option and a Pre-Purchase Option. The Voluntary Curtailment Option is a classic "Quote Scheme", while the Pre-Purchase option is very similar to a "Call Scheme 1 " (Hairston, 2001a, 2001b).
OSTI OAI (U.S. Department of Energy Office of Scientific and Technical Information), 2002
The restructuring of regional and national electricity markets in the U.S. and around the world has been accompanied by numerous problems, including generation capacity shortages, transmission congestion, wholesale price volatility, and reduced system reliability. These problems have created new opportunities for technologies and business approaches that allow load serving entities and other aggregators to control and manage the load patterns of wholesale and retail end-users they serve. Demand Response Programs, once called Load Management, have re-emerged as an important element in the fine-tuning of newly restructured electricity markets. During the summers of 1999 and 2001 they played a vital role in stabilizing wholesale markets and providing a hedge against generation shortfalls throughout the U.S.A. Demand Response Programs include "traditional" capacity reservation and interruptible/curtailable rates programs as well as voluntary demand bidding programs offered by either Load Serving Entities (LSEs) or regional Independent System Operators (ISOs). The Lawrence Berkeley National Lab (LBNL) has been monitoring the development of new types of Demand Response Programs both in the U.S. and around the world. This paper provides a survey and overview of the technologies and program designs that make up these emerging and important new programs.
The effect of the programs for demand response incentives in competitive electricity markets
European Transactions on Electrical Power, 2009
The special features of electricity such as non-storability and lack of good substitutes, the network related market power and the demand inelasticity result in high volatile electricity prices in pool markets, especially during peak hours. Demand response (DR) programs with the aid of distributed energy resources (DER) provide the means to increase demand elasticity and, as a consequence, to counteract the effect of market power. This paper aims to assess the effectiveness of DR programs and try to answer to what extend DR programs will increase the demand elasticity and to what degree it will reduce the market power. Two DR programs, that is, time of use (TOU) rate and economic load response program (ELRP) are considered in this paper and the possible price responsiveness of load is modeled as linearly correlated to the difference of day and night TOU rate and the compensation price of load curtailment in order to determine the demand elasticity frontier. Game theory is employed to model the strategic bidding of generation companies (GenCos) and the Lerner index is used to quantify the market power. The proposed model is applied in Italian electricity market for numerical study.
Assessment of the Possibilities of Demand Response Resources in Energy and Capacity Markets
2011
A principal objective of electricity regulators when establishing electricity markets was to decrease the cost of electricity through competition. However, this possibility is quite limited for some customer segments (small and medium customers): they are not able to reduce and manage their energy costs because they can have high opportunity costs (the time they should spent in understanding the market and submit the energy bids and offers and, finally, the processing of market information). The aim of this paper is to propose a responsive load economic model in order to manage the participation of customers in standard Demand Response programs. This procedure could help energy aggregators to integrate small customers in Electricity Markets and overcome technical and educational barriers and risks.