A look ahead at demand response in New England

Abstract

The paper describes the demand response programs developed and in operation in New England, and the revised designs for participation in the forward capacity market. This description will include how energy efficiency, demand-side resources, and distributed generation are eligible to participate in this new forward capacity market. The paper will also discuss various methods that can be used to configure and communicate with demand response resources and important concerns in specifying interfaces that accommodate multiple technologies and allow technology choice and evolution.

A review of demand side management business models in the electricity market

“…If a bid is accepted, the DRP EE would be paid according to the market clearing price. The approved excess EE can remain in the market for a specific number of years determined by the SO [8,9].…”

“…This is performed as a complicated metering and verification (M&V) process to make sure the excess EE is achieved as it was bid into the market. The integration of EE into the capacity market has proven to be of interest for social welfare by reducing the capacity price and fostering EE schemes [8,9].…”

A new wholesale bidding mechanism for enhanced demand response in smart grids

“…The PEMs for the three retailers are set identical as of the real-world end-user type, with a self-elasticity of 0.2 and cross-elasticity under a Gaussian distribution ( 0.2, 0.7) along each column and centered along the diagonal. The end users shift loads in a lossless manner, so the PEMs satisfy (4). The transaction timeframe of the DA market is equal to 24 hours.…”

“…URING the past several decades, pressures to increase competition, reduce market power, improve reliability, and enable the use of cleaner renewable energy technologies have led to an increasing push for demand-side participation in competitive power markets, such as distributed generation, onsite storage and Demand Response (DR) programs [1]- [4]. One of the key features of the recent push for smart grids has been to enhance demand-side participation, especially in the form of increased price responsiveness of electricity demand.…”

“…One challenge of integrating demand response in energy auctions is the design of an appropriate bidding mechanism. The existing bidding mechanisms that allow demand-side participation [4], [5] have the problems of either only covering a limited form of DR programs, such as Demand-Side Bid in Emergency market (DSBE) [6], or including numerous parameters physical load which produces the problem of calculation and information collection [7]. To solve these problems, this paper proposes a new demand-side bidding mechanism, in which demand-side bids include Price Elasticity Matrices (PEM) that represent any hour's load responsiveness to prices across time periods within the market's timeframe.…”