Profitability analysis on demand-side flexibility: A review

Jose-Fernando Forero-Quintero, Roberto Villafáfila-Robles, Sara Barja-Martinez, Ingrid Munné-Collado, Pol Olivella-Rosell and Daniel Montesinos-Miracle

Renewable and Sustainable Energy Reviews, 2022, vol. 169, issue C

Abstract: Flexibility has emerged as an optimal solution to the increasing uncertainty in power systems produced by the continuous development and penetration of distributed generation based on renewable energy. Many studies have shown the benefits for system operators and stakeholders of diverse ancillary services derived from demand-side flexibility. Cost-benefit analysis on these flexibility services should be carried out to determine the profitable applications, as well as the required adjustments on energy market, price schemes and normative framework to maximize the positive impacts of the available flexibility. This paper endeavors to review the main topics, variables and indexes related to the profitability analysis on demand-side flexibility, as well as the influence of energy markets, pricing and standards on revenue maximization. The conclusions drawn from this review demonstrate that the profitability of flexibility services considerably de-pends on energy market structure, involved assets, electricity prices and current ancillary services remuneration.

Keywords: Cost-benefit analysis; Flexibility source; Flexibility services; Profitability indicators (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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DOI: 10.1016/j.rser.2022.112906

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