IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v224y2021ics0360544221002917.html
   My bibliography  Save this article

Electricity demand response schemes in China: Pilot study and future outlook

Author

Listed:
  • Chen, Yongbao
  • Zhang, Lixin
  • Xu, Peng
  • Di Gangi, Alessandra

Abstract

Electricity demand response (DR) improves the overall energy management efficiency and allows for the integration of large-scale renewable energy into the power grid through interactive management and control of the supply and demand sides. However, in China and other emerging countries (e.g., Japan and Australia) with DR programs, the DR market mechanism is not well-established. This is particularly the situation in countries where the state power system is not freely open to participate in the DR market. Previous research has proven that considerable DR resources are largely existing in the demand side; however, the dearth of a market mechanism hinders the development of DR. Hence, a feasible market mechanism is urgently required. In this study, first, the experiences in existing DR-developed markets where DR has been legally regarded as an equivalent electricity resource are investigated. Second, a pilot DR program in Shanghai representing emerging DR markets with a non-liberated electricity background is presented. Moreover, two market mechanisms are analyzed: the energy efficiency obligation mode and the electricity capacity trading mode. Finally, five feasible DR mechanisms—mandatory energy-saving, cap and trade, DR-tiered electricity tariff, price-based program, and economic and emergency DR—are proposed for China and other DR emerging countries.

Suggested Citation

  • Chen, Yongbao & Zhang, Lixin & Xu, Peng & Di Gangi, Alessandra, 2021. "Electricity demand response schemes in China: Pilot study and future outlook," Energy, Elsevier, vol. 224(C).
    • Handle: RePEc:eee:energy:v:224:y:2021:i:c:s0360544221002917
    DOI: 10.1016/j.energy.2021.120042
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544221002917
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2021.120042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yu, Mengmeng & Hong, Seung Ho, 2017. "Incentive-based demand response considering hierarchical electricity market: A Stackelberg game approach," Applied Energy, Elsevier, vol. 203(C), pages 267-279.
    2. Fan, Jing-Li & Xu, Mao & Yang, Lin & Zhang, Xian, 2019. "Benefit evaluation of investment in CCS retrofitting of coal-fired power plants and PV power plants in China based on real options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    3. Gu, Yujiong & Xu, Jing & Chen, Dongchao & Wang, Zhong & Li, Qianqian, 2016. "Overall review of peak shaving for coal-fired power units in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 723-731.
    4. Luo, Zhe & Hong, SeungHo & Ding, YueMin, 2019. "A data mining-driven incentive-based demand response scheme for a virtual power plant," Applied Energy, Elsevier, vol. 239(C), pages 549-559.
    5. Wang, Huilong & Wang, Shengwei & Tang, Rui, 2019. "Development of grid-responsive buildings: Opportunities, challenges, capabilities and applications of HVAC systems in non-residential buildings in providing ancillary services by fast demand responses," Applied Energy, Elsevier, vol. 250(C), pages 697-712.
    6. Afzalan, Milad & Jazizadeh, Farrokh, 2019. "Residential loads flexibility potential for demand response using energy consumption patterns and user segments," Applied Energy, Elsevier, vol. 254(C).
    7. Klaassen, E.A.M. & Kobus, C.B.A. & Frunt, J. & Slootweg, J.G., 2016. "Responsiveness of residential electricity demand to dynamic tariffs: Experiences from a large field test in the Netherlands," Applied Energy, Elsevier, vol. 183(C), pages 1065-1074.
    8. Nosratabadi, Seyyed Mostafa & Hooshmand, Rahmat-Allah & Gholipour, Eskandar, 2016. "Stochastic profit-based scheduling of industrial virtual power plant using the best demand response strategy," Applied Energy, Elsevier, vol. 164(C), pages 590-606.
    9. Chen, Yongbao & Chen, Zhe & Xu, Peng & Li, Weilin & Sha, Huajing & Yang, Zhiwei & Li, Guowen & Hu, Chonghe, 2019. "Quantification of electricity flexibility in demand response: Office building case study," Energy, Elsevier, vol. 188(C).
    10. Lu, Renzhi & Hong, Seung Ho, 2019. "Incentive-based demand response for smart grid with reinforcement learning and deep neural network," Applied Energy, Elsevier, vol. 236(C), pages 937-949.
    11. Li, Weilin & Xu, Peng & Lu, Xing & Wang, Huilong & Pang, Zhihong, 2016. "Electricity demand response in China: Status, feasible market schemes and pilots," Energy, Elsevier, vol. 114(C), pages 981-994.
    12. Alasseri, Rajeev & Rao, T. Joji & Sreekanth, K.J., 2020. "Institution of incentive-based demand response programs and prospective policy assessments for a subsidized electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    13. Hany Elgamal, Ahmed & Kocher-Oberlehner, Gudrun & Robu, Valentin & Andoni, Merlinda, 2019. "Optimization of a multiple-scale renewable energy-based virtual power plant in the UK," Applied Energy, Elsevier, vol. 256(C).
    14. Khemakhem, Siwar & Rekik, Mouna & Krichen, Lotfi, 2019. "Double layer home energy supervision strategies based on demand response and plug-in electric vehicle control for flattening power load curves in a smart grid," Energy, Elsevier, vol. 167(C), pages 312-324.
    15. Koliou, Elta & Eid, Cherrelle & Chaves-Ávila, José Pablo & Hakvoort, Rudi A., 2014. "Demand response in liberalized electricity markets: Analysis of aggregated load participation in the German balancing mechanism," Energy, Elsevier, vol. 71(C), pages 245-254.
    16. Ju, Liwei & Tan, Zhongfu & Yuan, Jinyun & Tan, Qingkun & Li, Huanhuan & Dong, Fugui, 2016. "A bi-level stochastic scheduling optimization model for a virtual power plant connected to a wind–photovoltaic–energy storage system considering the uncertainty and demand response," Applied Energy, Elsevier, vol. 171(C), pages 184-199.
    17. Liu, Yingqi, 2017. "Demand response and energy efficiency in the capacity resource procurement: Case studies of forward capacity markets in ISO New England, PJM and Great Britain," Energy Policy, Elsevier, vol. 100(C), pages 271-282.
    18. Yan, Xing & Ozturk, Yusuf & Hu, Zechun & Song, Yonghua, 2018. "A review on price-driven residential demand response," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 411-419.
    19. Salo, Sonja & Jokisalo, Juha & Syri, Sanna & Kosonen, Risto, 2019. "Individual temperature control on demand response in a district heated office building in Finland," Energy, Elsevier, vol. 180(C), pages 946-954.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Lin, Jin & Dong, Jun & Dou, Xihao & Liu, Yao & Yang, Peiwen & Ma, Tongtao, 2022. "Psychological insights for incentive-based demand response incorporating battery energy storage systems: A two-loop Stackelberg game approach," Energy, Elsevier, vol. 239(PC).
    2. Su, Chengguo & Wang, Peilin & Yuan, Wenlin & Wu, Yang & Jiang, Feng & Wu, Zening & Yan, Denghua, 2022. "Short-term optimal scheduling of cascade hydropower plants with reverse-regulating effects," Renewable Energy, Elsevier, vol. 199(C), pages 395-406.
    3. Xu, Bo & Wang, Jiexin & Guo, Mengyuan & Lu, Jiayu & Li, Gehui & Han, Liang, 2021. "A hybrid demand response mechanism based on real-time incentive and real-time pricing," Energy, Elsevier, vol. 231(C).
    4. Matsui, Kohei & Lin, Jie & Thu, Kyaw & Miyazaki, Takahiko, 2022. "On the performance improvement of an inverted Brayton Cycle using a regenerative heat and mass exchanger," Energy, Elsevier, vol. 249(C).
    5. Yong, Jin Yi & Tan, Wen Shan & Khorasany, Mohsen & Razzaghi, Reza, 2023. "Electric vehicles destination charging: An overview of charging tariffs, business models and coordination strategies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 184(C).
    6. Etxandi-Santolaya, Maite & Colet-Subirachs, Alba & Barbero, Mattia & Corchero, Cristina, 2023. "Development of a platform for the assessment of demand-side flexibility in a microgrid laboratory," Applied Energy, Elsevier, vol. 331(C).
    7. Ghimire, Sujan & Nguyen-Huy, Thong & AL-Musaylh, Mohanad S. & Deo, Ravinesh C. & Casillas-Pérez, David & Salcedo-Sanz, Sancho, 2023. "A novel approach based on integration of convolutional neural networks and echo state network for daily electricity demand prediction," Energy, Elsevier, vol. 275(C).
    8. Máximo A. Domínguez-Garabitos & Víctor S. Ocaña-Guevara & Félix Santos-García & Adriana Arango-Manrique & Miguel Aybar-Mejía, 2022. "A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market," Energies, MDPI, vol. 15(4), pages 1-28, February.
    9. Zhu, Jie & Niu, Jide & Tian, Zhe & Zhou, Ruoyu & Ye, Chuang, 2022. "Rapid quantification of demand response potential of building HAVC system via data-driven model," Applied Energy, Elsevier, vol. 325(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meyabadi, A. Fattahi & Deihimi, M.H., 2017. "A review of demand-side management: Reconsidering theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 367-379.
    2. Xu, Jiuping & Liu, Tingting, 2020. "Technological paradigm-based approaches towards challenges and policy shifts for sustainable wind energy development," Energy Policy, Elsevier, vol. 142(C).
    3. Chen, Yongbao & Xu, Peng & Chen, Zhe & Wang, Hongxin & Sha, Huajing & Ji, Ying & Zhang, Yongming & Dou, Qiang & Wang, Sheng, 2020. "Experimental investigation of demand response potential of buildings: Combined passive thermal mass and active storage," Applied Energy, Elsevier, vol. 280(C).
    4. Zheng, Shunlin & Sun, Yi & Li, Bin & Qi, Bing & Zhang, Xudong & Li, Fei, 2021. "Incentive-based integrated demand response for multiple energy carriers under complex uncertainties and double coupling effects," Applied Energy, Elsevier, vol. 283(C).
    5. Wen, Lulu & Zhou, Kaile & Li, Jun & Wang, Shanyong, 2020. "Modified deep learning and reinforcement learning for an incentive-based demand response model," Energy, Elsevier, vol. 205(C).
    6. Lin, Jin & Dong, Jun & Liu, Dongran & Zhang, Yaoyu & Ma, Tongtao, 2022. "From peak shedding to low-carbon transitions: Customer psychological factors in demand response," Energy, Elsevier, vol. 238(PA).
    7. Xu, Fangyuan & Zhu, Weidong & Wang, Yi Fei & Lai, Chun Sing & Yuan, Haoliang & Zhao, Yujia & Guo, Siming & Fu, Zhengxin, 2022. "A new deregulated demand response scheme for load over-shifting city in regulated power market," Applied Energy, Elsevier, vol. 311(C).
    8. Antonopoulos, Ioannis & Robu, Valentin & Couraud, Benoit & Kirli, Desen & Norbu, Sonam & Kiprakis, Aristides & Flynn, David & Elizondo-Gonzalez, Sergio & Wattam, Steve, 2020. "Artificial intelligence and machine learning approaches to energy demand-side response: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 130(C).
    9. Wang, Huilong & Wang, Shengwei, 2021. "A hierarchical optimal control strategy for continuous demand response of building HVAC systems to provide frequency regulation service to smart power grids," Energy, Elsevier, vol. 230(C).
    10. Li, Han & Johra, Hicham & de Andrade Pereira, Flavia & Hong, Tianzhen & Le Dréau, Jérôme & Maturo, Anthony & Wei, Mingjun & Liu, Yapan & Saberi-Derakhtenjani, Ali & Nagy, Zoltan & Marszal-Pomianowska,, 2023. "Data-driven key performance indicators and datasets for building energy flexibility: A review and perspectives," Applied Energy, Elsevier, vol. 343(C).
    11. Kong, Xiangyu & Kong, Deqian & Yao, Jingtao & Bai, Linquan & Xiao, Jie, 2020. "Online pricing of demand response based on long short-term memory and reinforcement learning," Applied Energy, Elsevier, vol. 271(C).
    12. Tang, Hong & Wang, Shengwei & Li, Hangxin, 2021. "Flexibility categorization, sources, capabilities and technologies for energy-flexible and grid-responsive buildings: State-of-the-art and future perspective," Energy, Elsevier, vol. 219(C).
    13. Luo, Na & Langevin, Jared & Chandra-Putra, Handi & Lee, Sang Hoon, 2022. "Quantifying the effect of multiple load flexibility strategies on commercial building electricity demand and services via surrogate modeling," Applied Energy, Elsevier, vol. 309(C).
    14. Zhou, Kaile & Peng, Ning & Yin, Hui & Hu, Rong, 2023. "Urban virtual power plant operation optimization with incentive-based demand response," Energy, Elsevier, vol. 282(C).
    15. Mohammad Mohammadi Roozbehani & Ehsan Heydarian-Forushani & Saeed Hasanzadeh & Seifeddine Ben Elghali, 2022. "Virtual Power Plant Operational Strategies: Models, Markets, Optimization, Challenges, and Opportunities," Sustainability, MDPI, vol. 14(19), pages 1-23, September.
    16. Naval, Natalia & Yusta, Jose M., 2021. "Virtual power plant models and electricity markets - A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    17. Hlalele, Thabo G. & Zhang, Jiangfeng & Naidoo, Raj M. & Bansal, Ramesh C., 2021. "Multi-objective economic dispatch with residential demand response programme under renewable obligation," Energy, Elsevier, vol. 218(C).
    18. Keon Baek & Woong Ko & Jinho Kim, 2019. "Optimal Scheduling of Distributed Energy Resources in Residential Building under the Demand Response Commitment Contract," Energies, MDPI, vol. 12(14), pages 1-19, July.
    19. Liu, Hong & Zhao, Yue & Gu, Chenghong & Ge, Shaoyun & Yang, Zan, 2021. "Adjustable capability of the distributed energy system: Definition, framework, and evaluation model," Energy, Elsevier, vol. 222(C).
    20. Zheng, Ling & Zhou, Bin & Cao, Yijia & Wing Or, Siu & Li, Yong & Wing Chan, Ka, 2022. "Hierarchical distributed multi-energy demand response for coordinated operation of building clusters," Applied Energy, Elsevier, vol. 308(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:224:y:2021:i:c:s0360544221002917. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.