Economics at your fingertips  

Assessing demand response and smart metering impacts on long-term electricity market prices and system reliability

Manho Joung and Jinho Kim

Applied Energy, 2013, vol. 101, issue C, 441-448

Abstract: This paper proposes a long-term electricity market analysis framework to assess the impacts of the demand response and smart metering infrastructure implementation on market price fluctuations and system reliability. Based on the probabilistic production cost simulation method that has been widely used in conventional power system planning, the suggested framework considers the uncertainties of the demand and the generator availability in a probabilistic manner. Furthermore, the framework considers the strategic interactions between generators (or, equivalently generation companies) and incorporates price responsive demand enabled with smart metering. To demonstrate how market equilibrium price changes and the system reliability enhances as the demand response with smart metering increases, the framework is applied to an experimental system based on the IEEE 1996 Reliability Test System (RTS) data, followed by a case study of 2010 Korean electricity markets.

Keywords: Demand response; Electricity market price; Power system reliability; Smart grid and smart metering (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.elsevier. ... 405891/bibliographic

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Series data maintained by Dana Niculescu ().

Page updated 2017-09-29
Handle: RePEc:eee:appene:v:101:y:2013:i:c:p:441-448