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A review of the costs and benefits of demand response for electricity in the UK

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  • Bradley, Peter
  • Leach, Matthew
  • Torriti, Jacopo

Abstract

The recent policy discussion in the UK on the economic case for demand response (DR) calls for a reflection on available evidence regarding its costs and benefits. Existing studies tend to consider the size of investments and returns of certain forms of DR in isolation and do not consider economic welfare effects. From review of existing studies, policy documents, and some simple modelling of benefits of DR in providing reserve for unforeseen events, we demonstrate that the economic case for DR in UK electricity markets is positive. Consideration of economic welfare gains is provided.

Suggested Citation

  • Bradley, Peter & Leach, Matthew & Torriti, Jacopo, 2013. "A review of the costs and benefits of demand response for electricity in the UK," Energy Policy, Elsevier, vol. 52(C), pages 312-327.
    • Handle: RePEc:eee:enepol:v:52:y:2013:i:c:p:312-327
    DOI: 10.1016/j.enpol.2012.09.039
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    References listed on IDEAS

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    Keywords

    Demand response; CBA; Economic;
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