Integration Scenarios of Demand Response into Electricity Markets: Load Shifting, Financial Savings and Policy Implications
Feuerriegel, Stefan, and Dirk Neumann. "Integration Scenarios of Demand Response into Electricity Markets: Load Shifting, Financial Savings and Policy Implications." Energy Policy 96 (2016): 231-240.
45 Pages Posted: 7 Aug 2018
Date Written: 2016
Demand Response allows for the management of demand side resources in real-time; i.e. shifting electricity demand according to fluctuating supply. When integrated into electricity markets, Demand Response can be used for load shifting and as a replacement for both control reserve and balancing energy. These three usage scenarios are compared based on historic German data from 2011 to determine that load shifting provides the highest benefit: its annual financial savings accumulate to €3.110 M for both households and the service sector. This equals to relative savings of 2.83% compared to a scenario without load shifting. To improve Demand Response integration, the proposed model suggests policy implications: reducing bid sizes, delivery periods and the time-lag between market transactions and delivery dates in electricity markets.
Keywords: Demand Response, Load shifting, Economic potential, Policy implications, Optimization
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