Economics at your fingertips  

Large-scale demand response and its implications for spot prices, load and policies: Insights from the German-Austrian electricity market

Joscha Märkle-Huß, Stefan Feuerriegel and Dirk Neumann

Applied Energy, 2018, vol. 210, issue C, 1290-1298

Abstract: Active load shifting of the electricity demand unlocks a variety of benefits. Examples of such advantages include the increased stability of energy systems, reduced electricity costs and financial savings in the transmission as well as generation infrastructure. Although the technology necessary for demand response has been extensively studied for individual appliances or at the micro-grid level, evaluations of its nationwide impact are scarce. Yet governments and policy-makers require quantitative assessments in order to understand the underlying value and derive appropriate policies. For this purpose, this paper utilizes real-world data from the German-Austrian electricity market in order to calculate ex post the impact of demand response on electricity spot prices and load. As a result, we find that a 25% adoption rate of the available potential for load shifting could have decreased nationwide electricity expenses by approximately €500million, or 6%, in 2014. At the same time, we observe that the price volatility rises under this scheme and thus impairs non-flexible electricity customers. This observation entails significant implications in terms of designing effective policies.

Keywords: Demand response; Load shifting; Financial savings; Electricity price; Load; Policy implications (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) 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
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2018-04-28
Handle: RePEc:eee:appene:v:210:y:2018:i:c:p:1290-1298