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Provision of Demand Response from the prosumers in multiple markets

Cédric Clastres, Olivier Rebenaque and Patrick Jochem ()

Working Papers from Chaire Economie du climat

Abstract: Prosumers have different choices to maximize their photovoltaic (PV) self-consumption such as demand response (DR) or storage. In this paper, we investigate the prosumers’ profits related to the demand response provision. An optimization model is developed which allows the prosumer to bid in DR markets. We focus on two French markets: the NEBEF and the capacity market in which a signal is provided 24h before the real-time. We show that the prosumers are encouraged to provide a DR but the profits are too low compared to the battery investment. We derive a DR premium to foster battery adoption. The premium level depends on the retail rate structure but also on the load curve uncertainty

Keywords: Prosumers; Energy storage; Subsidies; Demand Response Markets (search for similar items in EconPapers)
JEL-codes: Q20 Q28 Q42 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2020
New Economics Papers: this item is included in nep-ene and nep-ore
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