IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v35y2010i4p1518-1525.html

Demand response resources: Who is responsible for implementation in a deregulated market?

Author

Listed:
  • Greening, Lorna A.

Abstract

Demand response resources (DRR) have potential to offer substantial benefits in the form of improved economic efficiency in wholesale electricity markets. Those benefits include better capacity factors for existing capacity, reductions in requirements for new capacity, enhanced reliability, relief of congestion and transmission constraints, reductions in price volatility, mitigation of market power and lower electricity prices for consumers. However, DRR has been slow to penetrate. There has been substantial disagreement as to which entities in a restructured market should promote the expanded implementation of DRR. This paper contends that no single entity can perform this function. But rather, wider implementation will need to accrue from coordinated actions along the electricity supply chain.

Suggested Citation

  • Greening, Lorna A., 2010. "Demand response resources: Who is responsible for implementation in a deregulated market?," Energy, Elsevier, vol. 35(4), pages 1518-1525.
    • Handle: RePEc:eee:energy:v:35:y:2010:i:4:p:1518-1525
    DOI: 10.1016/j.energy.2009.12.013
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544209005337
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2009.12.013?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Chao, Hung-po & Wilson, Robert, 1987. "Priority Service: Pricing, Investment, and Market Organization," American Economic Review, American Economic Association, vol. 77(5), pages 899-916, December.
    2. Faruqui, Ahmad & George, Stephen, 2005. "Quantifying Customer Response to Dynamic Pricing," The Electricity Journal, Elsevier, vol. 18(4), pages 53-63, May.
    3. Centolella, Paul, 2010. "The integration of Price Responsive Demand into Regional Transmission Organization (RTO) wholesale power markets and system operations," Energy, Elsevier, vol. 35(4), pages 1568-1574.
    4. Hopper, Nicole & Goldman, Charles & Bharvirkar, Ranjit & Neenan, Bernie, 2006. "Customer response to day-ahead market hourly pricing: Choices and performance," Utilities Policy, Elsevier, vol. 14(2), pages 126-134, June.
    5. Beard, T. Randolph & Sweeney, George H. & Gropper, Daniel M., 1995. "Subsidy free pricing of interruptible service contracts," Energy Economics, Elsevier, vol. 17(1), pages 53-58, January.
    6. Hirst, Eric, 2002. "The Financial and Physical Insurance Benefits of Price-Responsive Demand," The Electricity Journal, Elsevier, vol. 15(4), pages 66-73, May.
    7. repec:aen:journl:2008v29-02-a06 is not listed on IDEAS
    8. Joskow Paul L., 2008. "Incentive Regulation and Its Application to Electricity Networks," Review of Network Economics, De Gruyter, vol. 7(4), pages 1-14, December.
    9. Zibelman, Audrey & Krapels, Edward N., 2008. "Deployment of Demand Response as a Real-Time Resource in Organized Markets," The Electricity Journal, Elsevier, vol. 21(5), pages 51-56, June.
    10. Fraser, Hamish, 2001. "The Importance of an Active Demand Side in the Electricity Industry," The Electricity Journal, Elsevier, vol. 14(9), pages 52-73, November.
    11. O'Sheasy, Michael, 2003. "Demand Response: Not Just Rhetoric, It Can Truly Be the Silver Bullet," The Electricity Journal, Elsevier, vol. 16(10), pages 48-60, December.
    12. Hopper, Nicole & Goldman, Charles & Bharvirkar, Ranjit & Engel, Dan, 2007. "The Summer of 2006: A Milestone in the Ongoing Maturation of Demand Response," The Electricity Journal, Elsevier, vol. 20(5), pages 62-75, June.
    13. Reeder, Mark, 2006. "Want to Put an End to Capacity Markets? Think Real-Time Pricing," The Electricity Journal, Elsevier, vol. 19(6), pages 38-48, July.
    14. Rosenzweig, Michael B. & Fraser, Hamish & Falk, Jonathan & Voll, Sarah P., 2003. "Market Power and Demand Responsiveness: Letting Customers Protect Themselves," The Electricity Journal, Elsevier, vol. 16(4), pages 11-23, May.
    15. Spees, Kathleen & Lave, Lester B., 2007. "Demand Response and Electricity Market Efficiency," The Electricity Journal, Elsevier, vol. 20(3), pages 69-85, April.
    16. Munns, Diane, 2008. "Modeling New Approaches for Electric Energy Efficiency," The Electricity Journal, Elsevier, vol. 21(2), pages 20-26, March.
    17. Faruqui, A. & Hajos, A. & Hledik, R.M. & Newell, S.A., 2010. "Fostering economic demand response in the Midwest ISO," Energy, Elsevier, vol. 35(4), pages 1544-1552.
    18. Faruqui, Ahmad & Hledik, Ryan & Newell, Sam & Pfeifenberger, Hannes, 2007. "The Power of 5 Percent," The Electricity Journal, Elsevier, vol. 20(8), pages 68-77, October.
    19. Hung-po Chao, 1983. "Peak Load Pricing and Capacity Planning with Demand and Supply Uncertainty," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 179-190, Spring.
    20. Ruff, Larry E., 2002. "Demand Response: Reality versus "Resource"," The Electricity Journal, Elsevier, vol. 15(10), pages 10-23, December.
    21. Neenan, Bernard & Hemphill, Ross C., 2008. "Societal Benefits of Smart Metering Investments," The Electricity Journal, Elsevier, vol. 21(8), pages 32-45, October.
    22. Woo, Chi-Keung, 1990. "Efficient Electricity Pricing with Self-Rationing," Journal of Regulatory Economics, Springer, vol. 2(1), pages 69-81, March.
    23. Greening, Lorna A & Sanstad, Alan H & McMahon, James E, 1997. "Effects of Appliance Standards on Product Price and Attributes: An Hedonic Pricing Model," Journal of Regulatory Economics, Springer, vol. 11(2), pages 181-194, March.
    24. Neumann, Scott & Sioshansi, Fereidoon & Vojdani, Ali & Yee, Gaymond, 2006. "How to Get More Response from Demand Response," The Electricity Journal, Elsevier, vol. 19(8), pages 24-31, October.
    25. repec:aen:journl:2005v26-03-a05 is not listed on IDEAS
    26. Sheffrin, Anjali & Yoshimura, Henry & LaPlante, David & Neenan, Bernard, 2008. "Harnessing the Power of Demand," The Electricity Journal, Elsevier, vol. 21(2), pages 39-50, March.
    27. Walawalkar, Rahul & Blumsack, Seth & Apt, Jay & Fernands, Stephen, 2008. "An economic welfare analysis of demand response in the PJM electricity market," Energy Policy, Elsevier, vol. 36(10), pages 3692-3702, October.
    28. Woo, C.K. & Kollman, E. & Orans, R. & Price, S. & Horii, B., 2008. "Now that California has AMI, what can the state do with it?," Energy Policy, Elsevier, vol. 36(4), pages 1366-1374, April.
    29. Crew, Michael A & Fernando, Chitru S & Kleindorfer, Paul R, 1995. "The Theory of Peak-Load Pricing: A Survey," Journal of Regulatory Economics, Springer, vol. 8(3), pages 215-248, November.
    Full references (including those not matched with items on IDEAS)

    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. Adela Conchado & Pedro Linares, 2010. "The Economic Impact of Demand-Response Programs on Power Systems. A survey of the State of the Art," Working Papers 02-2010, Economics for Energy.
    2. Moore, J. & Woo, C.K. & Horii, B. & Price, S. & Olson, A., 2010. "Estimating the option value of a non-firm electricity tariff," Energy, Elsevier, vol. 35(4), pages 1609-1614.
    3. Faruqui, A. & Hajos, A. & Hledik, R.M. & Newell, S.A., 2010. "Fostering economic demand response in the Midwest ISO," Energy, Elsevier, vol. 35(4), pages 1544-1552.
    4. Woo, C.K. & Sreedharan, P. & Hargreaves, J. & Kahrl, F. & Wang, J. & Horowitz, I., 2014. "A review of electricity product differentiation," Applied Energy, Elsevier, vol. 114(C), pages 262-272.
    5. Jiang, Bo & Farid, Amro M. & Youcef-Toumi, Kamal, 2015. "Demand side management in a day-ahead wholesale market: A comparison of industrial & social welfare approaches," Applied Energy, Elsevier, vol. 156(C), pages 642-654.
    6. Fred Schroyen & Adekola Oyenuga, 2011. "Optimal pricing and capacity choice for a public service under risk of interruption," Journal of Regulatory Economics, Springer, vol. 39(3), pages 252-272, June.
    7. Almas Heshmati, 2014. "Demand, Customer Base-Line And Demand Response In The Electricity Market: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 862-888, December.
    8. Hung-po Chao, 2011. "Demand response in wholesale electricity markets: the choice of customer baseline," Journal of Regulatory Economics, Springer, vol. 39(1), pages 68-88, February.
    9. Woo, C.K. & Milstein, I. & Tishler, A. & Zarnikau, J., 2019. "A wholesale electricity market design sans missing money and price manipulation," Energy Policy, Elsevier, vol. 134(C).
    10. Chao, Hung-po, 2011. "Efficient pricing and investment in electricity markets with intermittent resources," Energy Policy, Elsevier, vol. 39(7), pages 3945-3953, July.
    11. Kazutoshi Tsuda & Michinori Uwasu & Keishiro Hara & Yukari Fuchigami, 2017. "Approaches to induce behavioral changes with respect to electricity consumption," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 7(1), pages 30-38, March.
    12. Lambin, Xavier, 2020. "Integration of Demand Response in Electricity Market Capacity Mechanisms," Utilities Policy, Elsevier, vol. 64(C).
    13. Hung-po Chao, 2012. "Competitive electricity markets with consumer subscription service in a smart grid," Journal of Regulatory Economics, Springer, vol. 41(1), pages 155-180, February.
    14. Herter, Karen & Wayland, Seth, 2010. "Residential response to critical-peak pricing of electricity: California evidence," Energy, Elsevier, vol. 35(4), pages 1561-1567.
    15. Bernard, Jean-Thomas & Roland, Michel, 2000. "Load management programs, cross-subsidies and transaction costs: the case of self-rationing," Resource and Energy Economics, Elsevier, vol. 22(2), pages 161-188, May.
    16. Horowitz, I. & Woo, C.K., 2006. "Designing Pareto-superior demand-response rate options," Energy, Elsevier, vol. 31(6), pages 1040-1051.
    17. Herter, Karen, 2007. "Residential implementation of critical-peak pricing of electricity," Energy Policy, Elsevier, vol. 35(4), pages 2121-2130, April.
    18. Katz, Jonas & Andersen, Frits Møller & Morthorst, Poul Erik, 2016. "Load-shift incentives for household demand response: Evaluation of hourly dynamic pricing and rebate schemes in a wind-based electricity system," Energy, Elsevier, vol. 115(P3), pages 1602-1616.
    19. Yang, Liu & Dong, Ciwei & Wan, C.L. Johnny & Ng, Chi To, 2013. "Electricity time-of-use tariff with consumer behavior consideration," International Journal of Production Economics, Elsevier, vol. 146(2), pages 402-410.
    20. Steffen, Bjarne & Weber, Christoph, 2013. "Efficient storage capacity in power systems with thermal and renewable generation," Energy Economics, Elsevier, vol. 36(C), pages 556-567.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:35:y:2010:i:4:p:1518-1525. 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.