A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market

Abstract

The energy transition has shown that fossil generation can be complemented with renewable energy and other resources capable of providing flexibility to the energy system’s operation, in compliance with the wholesale electricity market’s rules. This paper proposes a market-based methodology for introducing flexible demand in the energy dispatch , optimizing the scheduling of electricity system operation in the short-term, and considers the challenge of implementing an incentive scheme for participants in demand-response programs. The scheme includes the criteria of the elasticity of substitution and a renewable energy quota. This methodology is focused on a strategic demand shift to minimize the cost of supply; increase the dispatch of renewable energy; control CO2 emissions; and satisfy the generation, demand, and transmission operating constraints. These conditions encourage the development of a simulation tool that allows a sensitivity analysis to aid decision-making by operators and agents. The proposed methodology optimizes the operational cost of generation supply and specific performance indicators to determine the percentages of demand shift, the amount of CO2 emissions, the ratio of unserved power, the demand benefits obtained from an incentive scheme, and the natural market behavior.

Demand-Shifting Strategies to Optimize the Performance of the Wholesale Electricity Market: A Dominican Republic Study Case

“…This study evaluates the methodology proposed in [20] to implement the application of DR based on the strategy of shifting demand from one hourly block to another in the daily load curve to minimize generation supply costs and reduce CO 2 emissions. The analysis considers the wholesale electricity market regulation of the Dominican Republic as a case study.…”

“…Summary of contributions and common key concepts of energy management proposals. Modified from [22]. models 0 and 3 minimizes an MIP function using the CPLEX solver, model 1 minimizes, and model 2 maximizes an NLP function using a CONOPT solver.…”

National Security as a Value-Added Proposition for Advanced Nuclear Reactors: A U.S. Focus

“…Nonetheless, these benefits could be monetized through incentives that reward baseload capacity, flexibility, and load-following capabilities and penalize carbon emissions. Some markets attempt to adjust for this through capacity markets and other mechanisms [76][77][78][79][80][81][82]. The Lazard analysis of…”

“…Nonetheless, these benefits could be monetized through incentives that reward baseload capacity, flexibility, and load-following capabilities and penalize carbon emissions. Some markets attempt to adjust for this through capacity markets and other mechanisms [76][77][78][79][80][81][82]. The Lazard analysis of levelized costs for the most common power generation technologies includes an unsubsidized analysis, as well as analyses for LCOE sensitivity to federal tax subsidies, fuel prices, carbon pricing, cost of capital, and cost of firming intermittency.…”

Smart Grid, Demand Response and Optimization: A Critical Review of Computational Methods

“…Hence, a crystal-clear trading model is required for investment so that no actor will be able to make a free move. However, it is mandatory for all involved in the DR, whether they are getting a benefit or not, to be required to pay for the cost [100]. Therefore, while making an energy policy, the overall expenses and profit should be distributed thoroughly across the electricity chain [101].…”