A summary of demand response in electricity markets
TL;DR: In this article, the authors present a summary of demand response in deregulated electricity markets and highlight the most common indices used for DR measurement and evaluation, and some utilities' experiences with different demand response programs are discussed.
About: This article is published in Electric Power Systems Research.The article was published on 2008-11-01. It has received 1751 citations till now. The article focuses on the topics: Price elasticity of demand & Demand response.
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TL;DR: In this paper, the authors review different approaches, technologies, and strategies to manage large-scale schemes of variable renewable electricity such as solar and wind power, considering both supply and demand side measures.
Abstract: The paper reviews different approaches, technologies, and strategies to manage large-scale schemes of variable renewable electricity such as solar and wind power. We consider both supply and demand side measures. In addition to presenting energy system flexibility measures, their importance to renewable electricity is discussed. The flexibility measures available range from traditional ones such as grid extension or pumped hydro storage to more advanced strategies such as demand side management and demand side linked approaches, e.g. the use of electric vehicles for storing excess electricity, but also providing grid support services. Advanced batteries may offer new solutions in the future, though the high costs associated with batteries may restrict their use to smaller scale applications. Different “P2Y”-type of strategies, where P stands for surplus renewable power and Y for the energy form or energy service to which this excess in converted to, e.g. thermal energy, hydrogen, gas or mobility are receiving much attention as potential flexibility solutions, making use of the energy system as a whole. To “functionalize” or to assess the value of the various energy system flexibility measures, these need often be put into an electricity/energy market or utility service context. Summarizing, the outlook for managing large amounts of RE power in terms of options available seems to be promising.
1,180 citations
TL;DR: This paper provides a comprehensive review of various DR schemes and programs, based on the motivations offered to the consumers to participate in the program, and presents various optimization models for the optimal control of the DR strategies that have been proposed so far.
Abstract: The smart grid concept continues to evolve and various methods have been developed to enhance the energy efficiency of the electricity infrastructure. Demand Response (DR) is considered as the most cost-effective and reliable solution for the smoothing of the demand curve, when the system is under stress. DR refers to a procedure that is applied to motivate changes in the customers' power consumption habits, in response to incentives regarding the electricity prices. In this paper, we provide a comprehensive review of various DR schemes and programs, based on the motivations offered to the consumers to participate in the program. We classify the proposed DR schemes according to their control mechanism, to the motivations offered to reduce the power consumption and to the DR decision variable. We also present various optimization models for the optimal control of the DR strategies that have been proposed so far. These models are also categorized, based on the target of the optimization procedure. The key aspects that should be considered in the optimization problem are the system's constraints and the computational complexity of the applied optimization algorithm.
854 citations
Cites background from "A summary of demand response in ele..."
...In a microgrid environment, the controller facilitates supply side management, demand side management, as well as voltage and frequency control [24]....
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...For a more comprehensive study on the communication requirements, challenges and solutions for DR, the interested reader may refer to [6], [62], [63], [71]–[73]....
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TL;DR: This survey comprehensively explores the means/tariffs that the power utility takes to incentivize users to reschedule their energy usage patterns and outlines the potential challenges and future research directions in the context of demand response.
Abstract: The smart grid is widely considered to be the informationization of the power grid. As an essential characteristic of the smart grid, demand response can reschedule the users’ energy consumption to reduce the operating expense from expensive generators, and further to defer the capacity addition in the long run. This survey comprehensively explores four major aspects: 1) programs; 2) issues; 3) approaches; and 4) future extensions of demand response. Specifically, we first introduce the means/tariffs that the power utility takes to incentivize users to reschedule their energy usage patterns. Then we survey the existing mathematical models and problems in the previous and current literatures, followed by the state-of-the-art approaches and solutions to address these issues. Finally, based on the above overview, we also outline the potential challenges and future research directions in the context of demand response.
761 citations
Cites background from "A summary of demand response in ele..."
...I. INTRODUCTION T HE POWER grid is a large interconnected infrastructurefor delivering electricity from power plants to end users....
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TL;DR: In this paper, a stochastic battery with dissipation model was proposed to characterize the power limits and energy capacity of a collection of thermostatically controlled loads (TCLs) in terms of TCL parameters and random exogenous variables such as ambient temperature and user-specified set points.
Abstract: It is widely accepted that thermostatically controlled loads (TCLs) can be used to provide regulation reserve to the grid. We first argue that the aggregate flexibility offered by a collection of TCLs can be succinctly modeled as a stochastic battery with dissipation. We next characterize the power limits and energy capacity of this battery model in terms of TCL parameters and random exogenous variables such as ambient temperature and user-specified set-points. We then describe a direct load control architecture for regulation service provision. Here, we use a priority-stack-based control framework to select which TCLs to control at any time. The control objective is for the aggregate power deviation from baseline to track an automatic generation control signal supplied by the system operator. Simulation studies suggest the practical promise of our methods.
623 citations
TL;DR: In this article, a review of demand response in renewable energy resources (RERs) is presented, along with a complete benefit and cost assessment of DR and the effects of DR in electricity prices.
Abstract: Dealing with Renewable Energy Resources (RERs) requires sophisticated planning and operation scheduling along with state of art technologies. Among many possible ways for handling RERs, Demand Response (DR) is investigated in the current review. Because of every other year modifications in DR definition and classification announced by Federal Energy Regulatory Commission (FERC), the latest DR definition and classification are scrutinized in the present work. Moreover, a complete benefit and cost assessment of DR is added in the paper. Measurement and evolution methods along with the effects of DR in electricity prices are discussed. Next comes DR literature review of the recent papers majorly published after 2008. Eventually, successful DR implementations, around the world, are analyzed.
612 citations
References
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24 Jun 2007
TL;DR: In this paper, an overview of demand response in electricity market is presented, where the most common indices used for demand response evaluation are highlighted and some utilities experiences with different demand response programs are presented.
Abstract: This paper presents an overview of demand response (DR) in electricity market. The definition and a classification of demand response will be presented. Different potential benefits as well as cost components of demand response will be presented. The most common indices used for demand response evaluation are highlighted. Moreover, some utilities experiences with different demand response programs will be presented.
909 citations
TL;DR: In this paper, the authors argue that increasing the short-run price elasticity of the demand for electrical energy would improve the operation of electricity markets, however, that enhancing this elasticity is not an easy task.
Abstract: This tutorial paper discusses some aspects of electricity markets from the perspective of the demand-side. It argues that increasing the short-run price elasticity of the demand for electrical energy would improve the operation of these markets. It shows, however, that enhancing this elasticity is not an easy task. The tools that consumers and retailers of electrical energy need to participate more actively and effectively in electricity markets are discussed. The paper also describes how consumers of electricity can take part in the provision of power system security.
807 citations
TL;DR: In this paper, the effect of the market structure on the elasticity of the demand for electricity is analyzed and the consumers' behavior can be modeled using a matrix of self-and cross-elasticities.
Abstract: As electricity markets are liberalized, consumers become exposed to more volatile electricity prices and may decide to modify the profile of their demand to reduce their electricity costs. This paper analyzes the effect that the market structure can have on the elasticity of the demand for electricity. It then describes how the consumers' behavior can be modeled using a matrix of self- and cross-elasticities. It is shown how these elasticities can be taken into consideration when scheduling generation and setting the price of electricity in a pool based electricity market. These concepts are illustrated using a 26-generator system.
591 citations
TL;DR: In this article, the real-time price elasticity of electricity has been quantified and shown to be fairly low for consumers currently active in the spot market, which would imply a limited scope for government intervention in supply security issues.
434 citations
TL;DR: A review of published studies indicates that customers respond to higher prices that they expect to continue by purchasing more efficient appliances and taking other efficiency measures as discussed by the authors, while providers focus on supply, assuming that consumers are unwilling or unable to modify their consumption.
297 citations