Assessment of Benefits Commercial Customers Can Receive from Their Demand Flexibility in the Power Market of Georgia

The purpose of our study is twofold: the first is to demonstrate that power-intensive commercial entities (with 1,0 MW or more network connection capacities) can benefit from participation in Demand Response (DR) programme(s) by selling excess power generated by them to the balancing market of Georgia if they are permitted to have an access to the electrical grid. The additional benefits come from the avoidance of network charges; and the second is to show that for relatively small power-intensive commercial entities (with 100 kW or less network connection capacities) participation in Demand Response (DR) programme(s) is not equally beneficial but still reasonable. To meet research objectives 4 (four) case studies have been conducted. Study participants were the Hotel (with 1,0 MW network connection capacity) and the private University (with 0,04 MW network connection capacity). Their names cannot be divulged due to the confidentiality requirements. Each of them was offered two DR programme(s) with different schemes for participation. These schemes were approved by DSR participants and adapted to the current needs of National Grid of Georgia. Finally, the cost of each DR programme as well as the expected annual revenues for participants have been calculated based on selected schemes -(a) availability requirement, (b) response time, (c) maximum duration of activation, and (d) estimated number of activations/yr, and on the basis of ESCO?s annual reports reflecting the companies? power consumptions in the year of 2017. Under the study two hypotheses have been tested. The first research hypothesis is following: ?Power-intensive commercial entities (with 1,0 MW or more network connection capacities) can benefit from participation in Demand Response (DR) programme(s) if they are permitted to do so. For these entities more beneficial will be the investments in CCHP (Combined Coolong, Heat, and Power) plant than in PV panels?. The second research hypothesis is following: ?For relatively small power-intensive commercial entities (with 100 kW or less network connection capacities) participation in Demand Response (DR) programme(s) is less profitable but still reasonable. For them it is better to use the generated power for their own purposes than just to sell it to the Balancing Market and make money?. The results of the case studies are presented in the article.