Provision of Demand Response from the prosumers in multiple markets

Cédric Clastres (), Olivier Rebenaque () and Patrick Jochem
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Cédric Clastres: GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes
Olivier Rebenaque: GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, CEC - Chaire Economie du Climat - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres

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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)
Date: 2020-07
New Economics Papers: this item is included in nep-ene
Note: View the original document on HAL open archive server: https://hal.science/hal-03167446v1
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Working Paper: Provision of Demand Response from the prosumers in multiple markets (2020)
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