Advanced Search
MyIDEAS: Login

Demand side management: Benefits and challenges

Contents:

Author Info

  • Strbac, Goran
Registered author(s):

    Abstract

    In this paper, the major benefits and challenges of electricity demand side management (DSM) are discussed in the context of the UK electricity system. The relatively low utilisation of generation and networks (of about 50%) means that there is significant scope for DSM to contribute to increasing the efficiency of the system investment. The importance of the diversity of electricity load is discussed and the negative effects of DSM on load diversity illustrated. Ageing assets, the growth in renewable and other low-carbon generation technologies and advances in information and communication technologies are identified as major additional drivers that could lead to wider applications of DSM in the medium term. Potential benefits of DSM are discussed in the context of generation and of transmission and distribution networks. The provision of back-up capacity by generation may not be efficient as it will be needed relatively infrequently, and DSM may be better placed to support security. We also present an analysis of the value of DSM in balancing generation and demand in a future UK electricity system with significant variable renewable generation. We give a number of reasons for the relatively slow uptake of DSM, particularly in the residential, commercial and small business sectors. They include a lack of metering, information and communication infrastructure, lack of understanding of the benefits of DSM, problems with the competitiveness of DSM when compared with traditional approaches, an increase in the complexity of system operation and inappropriate market incentives.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/B6V2W-4TW0SWR-7/2/ff67656ebacc17b8322ff6e774643e0d
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 36 (2008)
    Issue (Month): 12 (December)
    Pages: 4419-4426

    as in new window
    Handle: RePEc:eee:enepol:v:36:y:2008:i:12:p:4419-4426

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Electricity demand Electricity networks Metering;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Nicolosi, Marco, 2010. "Wind power integration and power system flexibility-An empirical analysis of extreme events in Germany under the new negative price regime," Energy Policy, Elsevier, vol. 38(11), pages 7257-7268, November.
    2. Claire Bergaentzlé & Cédric Clastres & Haikel Khalfallah, 2014. "Demand-side management and European environmental and energy goals: an optimal complementary approach," Post-Print halshs-00928678, HAL.
    3. Talaei, A. & Begg, K. & Jamasb, T., 2012. "The Large Scale Roll-Out of Electric Vehicles: The Effect on the Electricity Sector and CO2 Emissions," Cambridge Working Papers in Economics 1246, Faculty of Economics, University of Cambridge.
    4. Anna Kowalska-Pyzalska & Katarzyna Maciejowska & Katarzyna Sznajd-Weron & Rafal Weron, 2014. "Diffusion and adoption of dynamic electricity tariffs: An agent-based modeling approach," HSC Research Reports HSC/14/01, Hugo Steinhaus Center, Wroclaw University of Technology.
    5. Batman, Alp & Bagriyanik, F. Gul & Aygen, Z. Elif & Gül, Ömer & Bagriyanik, Mustafa, 2012. "A feasibility study of grid-connected photovoltaic systems in Istanbul, Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5678-5686.
    6. Gottwalt, Sebastian & Ketter, Wolfgang & Block, Carsten & Collins, John & Weinhardt, Christof, 2011. "Demand side management—A simulation of household behavior under variable prices," Energy Policy, Elsevier, vol. 39(12), pages 8163-8174.
    7. Bergaentzlé, Claire & Clastres, Cédric & Khalfallah, Haikel, 2014. "Demand-side management and European environmental and energy goals: An optimal complementary approach," Energy Policy, Elsevier, vol. 67(C), pages 858-869.
    8. Keane, A. & Tuohy, A. & Meibom, P. & Denny, E. & Flynn, D. & Mullane, A. & O'Malley, M., 2011. "Demand side resource operation on the Irish power system with high wind power penetration," Energy Policy, Elsevier, vol. 39(5), pages 2925-2934, May.
    9. Nele Friedrichsen, 2011. "Governing Smart Grids - the Case for an Independent System Operator," Bremen Energy Working Papers 0011, Bremer Energie Institut.
    10. Dave, Saraansh & Sooriyabandara, Mahesh & Yearworth, Mike, 2013. "System behaviour modelling for demand response provision in a smart grid," Energy Policy, Elsevier, vol. 61(C), pages 172-181.
    11. Félix Iglesias & Peter Palensky & Sergio Cantos & Friederich Kupzog, 2012. "Demand Side Management for Stand-Alone Hybrid Power Systems Based on Load Identification," Energies, MDPI, Open Access Journal, vol. 5(11), pages 4517-4532, November.
    12. van der Welle, Adriaan J. & de Joode, Jeroen, 2011. "Regulatory road maps for the integration of intermittent electricity generation: Methodology development and the case of The Netherlands," Energy Policy, Elsevier, vol. 39(10), pages 5829-5839, October.
    13. Anna Kowalska-Pyzalska & Katarzyna Maciejowska & Katarzyna Sznajd-Weron & Rafal Weron, 2013. "Going green: Agent-based modeling of the diffusion of dynamic electricity tariffs," HSC Research Reports HSC/13/05, Hugo Steinhaus Center, Wroclaw University of Technology.
    14. Heshmati, Almas, 2012. "Survey of Models on Demand, Customer Base-Line and Demand Response and Their Relationships in the Power Market," IZA Discussion Papers 6637, Institute for the Study of Labor (IZA).
    15. Claire M. Weiller & Michael G. Pollitt, 2013. "Platform Markets and Energy Services," Cambridge Working Papers in Economics 1361, Faculty of Economics, University of Cambridge.
    16. Calili, Rodrigo F. & Souza, Reinaldo C. & Galli, Alain & Armstrong, Margaret & Marcato, André Luis M., 2014. "Estimating the cost savings and avoided CO2 emissions in Brazil by implementing energy efficient policies," Energy Policy, Elsevier, vol. 67(C), pages 4-15.
    17. de Joode, J. & Jansen, J.C. & van der Welle, A.J. & Scheepers, M.J.J., 2009. "Increasing penetration of renewable and distributed electricity generation and the need for different network regulation," Energy Policy, Elsevier, vol. 37(8), pages 2907-2915, August.
    18. Jennings, Mark G., 2013. "A smarter plan? A policy comparison between Great Britain and Ireland's deployment strategies for rolling out new metering technologies," Energy Policy, Elsevier, vol. 57(C), pages 462-468.
    19. Anna Kowalska-Pyzalska & Katarzyna Maciejowska & Katarzyna Sznajd-Weron & Rafal Weron, 2014. "Modeling consumer opinions towards dynamic pricing: An agent-based approach," HSC Research Reports HSC/14/06, Hugo Steinhaus Center, Wroclaw University of Technology.
    20. Claire Bergaentzlé, 2012. "Particularités d'adoption des compteurs intelligents au Royaume-Uni et en Allemagne : entre marchés de comptage libéralisé et règles à mettre en place pour un réel smart grid intégré," Post-Print halshs-00793322, HAL.
    21. Shaw, Rita & Attree, Mike & Jackson, Tim & Kay, Mike, 2009. "The value of reducing distribution losses by domestic load-shifting: a network perspective," Energy Policy, Elsevier, vol. 37(8), pages 3159-3167, August.
    22. Matallanas, E. & Castillo-Cagigal, M. & Gutiérrez, A. & Monasterio-Huelin, F. & Caamaño-Martín, E. & Masa, D. & Jiménez-Leube, J., 2012. "Neural network controller for Active Demand-Side Management with PV energy in the residential sector," Applied Energy, Elsevier, vol. 91(1), pages 90-97.
    23. Lin, Chen-Chun & Yang, Chia-Han & Shyua, Joseph Z., 2013. "A comparison of innovation policy in the smart grid industry across the pacific: China and the USA," Energy Policy, Elsevier, vol. 57(C), pages 119-132.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:36:y:2008:i:12:p:4419-4426. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.