Overview of Demand Response under the Smart Grid and Market paradigms (original) (raw)

2010, 2010 Innovative Smart Grid Technologies (ISGT)

Demand Response: A Transformative Force in Wholesale Electric Markets

2010

The growing reliance on demand response in organized electric power markets has had major effects on these markets, affecting the choice of resources in these areas and the price levels and efficiency of the markets. Greater levels of demand response promise to further transform electric power markets. Development of a responsive market demand will lead to major changes in the way that the electricity industry operates. These changes will be further enhanced by the substantial investments underway to create a smart grid. Key developments that could transform electric power markets include the widespread use of electric car batteries or major appliances to provide electric power ancillary services and the use of demand resources as a “dance partner” for variable wind generation. This paper explores developments in these areas and outlines a vision for a more efficient and secure electric grid based on the full participation of demand response resources. Evidence of the beginnings of ...

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