Demand response in liberalized electricity markets: Analysis of aggregated load participation in the German balancing mechanism

Elta Koliou, Cherrelle Eid, José Chaves-Ávila and Rudi A. Hakvoort

Energy, 2014, vol. 71, issue C, 245-254

Abstract: Power systems are in the midst of radical changes as a result of steadily rising demand, advanced technology integration and increasing penetration levels of renewable energy sources. Such developments have brought about increasing recognition of consumer behavior and the provision of DR (demand response). The aggregation of small loads as a DR flexibility resource allows end-users to participate in electricity markets and aid in maintaining dynamic system stability. An analysis of the German balancing mechanism illustrates that DR is undermined by three mechanism design aspects: minimum bidding volume, minimum bid duration and binding up and down bids.

Keywords: Balancing; Demand response; Markets; Policy; Aggregation (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (41)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:71:y:2014:i:c:p:245-254

DOI: 10.1016/j.energy.2014.04.067

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