Economics at your fingertips  

How do demand response and electrical energy storage affect (the need for) a capacity market?

Agha Salman M. Khan, Remco A. Verzijlbergh, Ozgur Can Sakinci and Laurens J. De Vries

Applied Energy, 2018, vol. 214, issue C, 39-62

Abstract: To ensure security of supply and incentivize reliable investment in generation capacity, capacity markets (CMs) have been implemented or are being considered. However, demand response (DR) and electrical energy storage (EES) also contribute to system adequacy. In this paper, we analyse the change in the need for a CM if DR and EES are available, in the presence of a growing portfolio share of intermittent renewable energy sources electricity (RES-E). We present a novel hybrid electricity market model of the transition to a low-carbon electricity system which uses optimization for short-term market operations and agent-based simulation of long-term decisions.

Keywords: Capacity market; Demand response; Electrical energy storage; Agent-based modelling; Optimization; System adequacy (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 2019-05-10
Handle: RePEc:eee:appene:v:214:y:2018:i:c:p:39-62