Integration of Methodologies for the Evaluation of Offer Curves in Energy and Capacity Markets through Energy Efficiency and Demand Response

Antonio Gabaldón, Carlos Álvarez, María Del Carmen Ruiz-Abellón, Antonio Guillamón, Sergio Valero-Verdú, Roque Molina and Ana García-Garre
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Antonio Gabaldón: Department of Electrical Engineering, Universidad Politécnica de Cartagena, 30202 Cartagena, Spain
Carlos Álvarez: Institute for Energy Engineering, Universidad Politécnica de Valencia, 46022 Valencia, Spain
María Del Carmen Ruiz-Abellón: Department of Applied Mathematics and Statistics, Universidad Politécnica de Cartagena, 30202 Cartagena, Spain
Antonio Guillamón: Department of Applied Mathematics and Statistics, Universidad Politécnica de Cartagena, 30202 Cartagena, Spain
Sergio Valero-Verdú: Department of Mechanics and Energy Engineering, Universidad Miguel Hernández de Elche, 03202 Elche, Spain
Roque Molina: Department of Applied Mathematics and Statistics, Universidad Politécnica de Cartagena, 30202 Cartagena, Spain
Ana García-Garre: Department of Electrical Engineering, Universidad Politécnica de Cartagena, 30202 Cartagena, Spain

Sustainability, 2018, vol. 10, issue 2, 1-27

Abstract: The objectives of improving the efficiency, and integration, of renewable sources by 2030–2050 are complex in practice and should be linked to an increase of demand-side flexibility. The main challenges to achieving this flexibility are the lack of incentives and an adequate framework. For instance, customers’ revenue is usually low, the volatility of prices is high and there is not any practical feedback to customers from smart meters. The possibility of increasing customer revenue could reduce the uncertainty with respect to economic concerns, improving investments in efficiency, enabling technology and thus, engaging more customers in these policies. This objective could be achieved by the participation of customers in several markets. Moreover, Demand Response and Energy Efficiency can share ICT technologies but this participation needs to perform an aggregation of demand. The idea of this paper is to present some methodologies for facilitating the definition and evaluation of energy versus cost curves; and subsequently to estimate potential revenues due to Demand Response. This can be accomplished by models that estimate: demand and energy aggregation; economic opportunities and benefits; impacts on customer convenience; customer feedback and price analysis. By doing so, we would have comprehensive information that can help customers and aggregators to define energy packages and their monetary value with the objective of fostering their market participation.

Keywords: demand response; load modelling; energy efficiency; economic dr models; information and communication technology; electricity markets; load disaggregation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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