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Provision of Demand Response from the prosumers in multiple markets

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Listed:
  • Cédric Clastres
  • Olivier Rebenaque
  • Patrick Jochem

Abstract

Prosumers have different choices to maximize their photovoltaic (PV) self-consumption such as demand response (DR) or storage. In this paper, we investigate the prosumers’ profits related to the demand response provision. An optimization model is developed which allows the prosumer to bid in DR markets. We focus on two French markets: the NEBEF and the capacity market in which a signal is provided 24h before the real-time. We show that the prosumers are encouraged to provide a DR but the profits are too low compared to the battery investment. We derive a DR premium to foster battery adoption. The premium level depends on the retail rate structure but also on the load curve uncertainty

Suggested Citation

  • Cédric Clastres & Olivier Rebenaque & Patrick Jochem, 2020. "Provision of Demand Response from the prosumers in multiple markets," Working Papers 2008, Chaire Economie du climat.
    • Handle: RePEc:cec:wpaper:2008
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    References listed on IDEAS

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    More about this item

    Keywords

    Prosumers; Energy storage; Subsidies; Demand Response Markets;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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