A Review of Barriers and Enables in Demand Response Performance Chain

Abstract

The role of demand response increases considerably with a higher share of renewable energy sources in the energy mix, characterized with more frequent energy market price fluctuations due to mismatch between uncontrollable weather-dependent production and currently relatively inflexible energy consumption. Reallocation of energy consumption from high-price hours to lower price hours helps to avoid extra costs to the entire economy and ensures the possibility to minimize fossil-based energy generation, therefore contributing to the achievement of zero-emission goals. The research aims to analyze involvement stimulating factors of demand-side management and demand response from the angles of various energy sector participants, identifying barriers and enabling a successful implementation and wider development of this important energy transition facilitator. The qualitative methods are as follows: utilizing the conducted literature review; and scrutinizing scientific publications, reports and legal acts. As a result, the authors point out the five main aspects: pricing mechanisms, incentives, technology, government regulation and customer awareness. Demand response requires spectacular human and technological resources and administrative, financial and educational efforts. However, the demand response addresses many challenges, such as cost savings, innovation, integration of renewable energy sources, effective, stable and safe power grid performance, reduced need for costly infrastructure modifications, and greenhouse gas emission reduction. The abovementioned benefits influence what the demand-response brings, and are crucial for modern society and a successful energy transition.