The Economic Impact of Demand-Response Programs on Power Systems. A survey of the State of the Art
Demand Response (DR) programs, which aim to reduce electricity consumption in times of high energy cost or network constraints by allowing customers to respond to price or quantity signals, are becoming very popular in many electricity systems, frequently associated to smart-grid developments. These programs could entail significant benefits for power systems and the society as a whole. Assessing the magnitude of these benefits is crucial to determine their convenience, especially when there are non negligible costs associated to their implementation (if advanced metering infrastructure or control technologies are needed). Quantifying DR benefits requires first to estimate the changes in demand patterns that can potentially be achieved and then to evaluate the effects of those changes on the complex behavior of power systems, neither of these analyses being trivial. This paper presents a survey of the state of the art of these assessments.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Faruqui, Ahmad & George, Stephen, 2005. "Quantifying Customer Response to Dynamic Pricing," The Electricity Journal, Elsevier, vol. 18(4), pages 53-63, May.
- Earle, Robert & Kahn, Edward P. & Macan, Edo, 2009. "Measuring the Capacity Impacts of Demand Response," The Electricity Journal, Elsevier, vol. 22(6), pages 47-58, July.
- Parks, Richard W. & Weitzel, David, 1984. "Measuring the consumer welfare effects of time-differentiated electricity prices," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 35-64.
- Boonekamp, Piet G.M., 2007. "Price elasticities, policy measures and actual developments in household energy consumption - A bottom up analysis for the Netherlands," Energy Economics, Elsevier, vol. 29(2), pages 133-157, March.
- Shaw, Rita & Attree, Mike & Jackson, Tim & Kay, Mike, 2009. "The value of reducing distribution losses by domestic load-shifting: a network perspective," Energy Policy, Elsevier, vol. 37(8), pages 3159-3167, August.
- 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.
- Stephen P. Holland & Erin T. Mansur, 2007.
"Is Real-Time Pricing Green? The Environmental Impacts of Electricity Demand Variance,"
NBER Working Papers
13508, National Bureau of Economic Research, Inc.
- Stephen P. Holland & Erin T. Mansur, 2008. "Is Real-Time Pricing Green? The Environmental Impacts of Electricity Demand Variance," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 550-561, August.
- Berg, Sanford V. & Capehart, Barney L. & Feldman, Jack & LaTour, Stephen & Sullivan, Robert L., 1983. "An interdisciplinary approach to cost/benefit analysis of innovative electric rates," Resources and Energy, Elsevier, vol. 5(4), pages 313-330, December.
- Spees, Kathleen & Lave, Lester B., 2007. "Demand Response and Electricity Market Efficiency," The Electricity Journal, Elsevier, vol. 20(3), pages 69-85, April.
- Lawrence, Anthony & Braithwait, Steven, 1979. "The residential demand for electricity with time-of-day pricing," Journal of Econometrics, Elsevier, vol. 9(1-2), pages 59-77, January.
- Brophy Haney, A. & Jamasb, T. & Pollitt, M.G., 2009. "Smart Metering and Electricity Demand: Technology, Economics and International Experience," Cambridge Working Papers in Economics 0905, Faculty of Economics, University of Cambridge.
- Neenan, Bernard & Hemphill, Ross C., 2008. "Societal Benefits of Smart Metering Investments," The Electricity Journal, Elsevier, vol. 21(8), pages 32-45, October.
- Herter, Karen, 2007. "Residential implementation of critical-peak pricing of electricity," Energy Policy, Elsevier, vol. 35(4), pages 2121-2130, April.
- Caves, Douglas W. & Christensen, Laurits R. & Schoech, Philip E. & Hendricks, Wallace, 1984. "A comparison of different methodologies in a case study of residential time-of-use electricity pricing : Cost-Benefit Analysis," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 17-34.
- Peter C. Reiss & Matthew W. White, 2005. "Household Electricity Demand, Revisited," Review of Economic Studies, Oxford University Press, vol. 72(3), pages 853-883.
- Hausmann, J. A. & Kinnucan, M. & McFaddden, D., 1979. "A two-level electricity demand model : Evaluation of the connecticut time-of-day pricing test," Journal of Econometrics, Elsevier, vol. 10(3), pages 263-289, August.
- Severin Borenstein, 2005. "The Long-Run Efficiency of Real-Time Electricity Pricing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 93-116.
- Kohler, Daniel F. & Mitchell, Bridger M., 1984. "Response to residential time-of-use electricity rates : How transferable are the findings?," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 141-177.
- 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.
When requesting a correction, please mention this item's handle: RePEc:efe:wpaper:02-2010. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pablo Pintos)
If references are entirely missing, you can add them using this form.