Integration scenarios of Demand Response into electricity markets: Load shifting, financial savings and policy implications

Stefan Feuerriegel and Dirk Neumann

Energy Policy, 2016, vol. 96, issue C, 231-240

Abstract: Demand Response allows for the management of demand side resources in real-time; i.e. shifting electricity demand according to fluctuating supply. When integrated into electricity markets, Demand Response can be used for load shifting and as a replacement for both control reserve and balancing energy. These three usage scenarios are compared based on historic German data from 2011 to determine that load shifting provides the highest benefit: its annual financial savings accumulate to €3.110M for both households and the service sector. This equals to relative savings of 2.83% compared to a scenario without load shifting. To improve Demand Response integration, the proposed model suggests policy implications: reducing bid sizes, delivery periods and the time-lag between market transactions and delivery dates in electricity markets.

Keywords: Demand Response; Load shifting; Economic potential; Policy implications; Optimization (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:96:y:2016:i:c:p:231-240

DOI: 10.1016/j.enpol.2016.05.050

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