Measuring the Capacity Impacts of Demand Response

Robert Earle, Edward P. Kahn and Edo Macan

The Electricity Journal, 2009, vol. 22, issue 6, 47-58

Abstract: Critical peak pricing and peak time rebate programs offer benefits by increasing system reliability, and therefore, reducing capacity needs of the electric power system. These benefits, however, decrease substantially as the size of the programs grows relative to the system size. More flexible schemes for deployment of demand response can help address the decreasing returns to scale in capacity value, but more flexible demand response has decreasing returns to scale as well.

Date: 2009
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