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Quantifying distribution-system operators' economic incentives to promote residential demand response

Author

Listed:
  • Koliou, Elta
  • Bartusch, Cajsa
  • Picciariello, Angela
  • Eklund, Tobias
  • Söder, Lennart
  • Hakvoort, Rudi A.

Abstract

Demand response (DR) from end-users is widely investigated as a power-system flexibility resource in a European smart-grid environment. Limited knowledge exists on the added value such flexibility can bring to actors in the electricity value chain. This work investigates the economic effect of consumption flexibility under current regulatory remuneration on distribution-system operators with a Swedish case study. Results indicate DR leads to savings for the distribution-system operator, which might be used towards smart-grid investments. Peak demand is and will continue to be a main driver for grid costs and therefore should be a focal point in tariff design.

Suggested Citation

  • Koliou, Elta & Bartusch, Cajsa & Picciariello, Angela & Eklund, Tobias & Söder, Lennart & Hakvoort, Rudi A., 2015. "Quantifying distribution-system operators' economic incentives to promote residential demand response," Utilities Policy, Elsevier, vol. 35(C), pages 28-40.
    • Handle: RePEc:eee:juipol:v:35:y:2015:i:c:p:28-40
    DOI: 10.1016/j.jup.2015.07.001
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    References listed on IDEAS

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    3. Matthew Gough & Sérgio F. Santos & Mohammed Javadi & Rui Castro & João P. S. Catalão, 2020. "Prosumer Flexibility: A Comprehensive State-of-the-Art Review and Scientometric Analysis," Energies, MDPI, vol. 13(11), pages 1-32, May.
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    5. Lorenzi, Guido & Silva, Carlos Augusto Santos, 2016. "Comparing demand response and battery storage to optimize self-consumption in PV systems," Applied Energy, Elsevier, vol. 180(C), pages 524-535.
    6. Li, Na & Hakvoort, Rudi A. & Lukszo, Zofia, 2021. "Cost allocation in integrated community energy systems - A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    7. Alasseri, Rajeev & Tripathi, Ashish & Joji Rao, T. & Sreekanth, K.J., 2017. "A review on implementation strategies for demand side management (DSM) in Kuwait through incentive-based demand response programs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 617-635.
    8. Osaru Agbonaye & Patrick Keatley & Ye Huang & Motasem Bani Mustafa & Neil Hewitt, 2020. "Design, Valuation and Comparison of Demand Response Strategies for Congestion Management," Energies, MDPI, vol. 13(22), pages 1-29, November.
    9. Na Li & Rudi Hakvoort & Zofia Lukszo, 2021. "Cost Allocation in Integrated Community Energy Systems—Social Acceptance," Sustainability, MDPI, vol. 13(17), pages 1-24, September.
    10. Cruz, Marco R.M. & Fitiwi, Desta Z. & Santos, Sérgio F. & Catalão, João P.S., 2018. "A comprehensive survey of flexibility options for supporting the low-carbon energy future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 338-353.
    11. Nijhuis, M. & Gibescu, M. & Cobben, J.F.G., 2017. "Analysis of reflectivity & predictability of electricity network tariff structures for household consumers," Energy Policy, Elsevier, vol. 109(C), pages 631-641.
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    13. Derakhshan, Ghasem & Shayanfar, Heidar Ali & Kazemi, Ahad, 2016. "The optimization of demand response programs in smart grids," Energy Policy, Elsevier, vol. 94(C), pages 295-306.

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