An economic welfare analysis of demand response in the PJM electricity market

Walawalkar, Rahul; Blumsack, Seth; Apt, Jay; Fernands, Stephen

doi:10.1016/j.enpol.2008.06.036

Cited by 86 publications

(52 citation statements)

References 4 publications

(7 reference statements)

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“…Bottleneck is caused by insufficient conductor capacity according to [10,11]. This fact as well as LCC is set by physical conditions (according to conductors dimensioning methodology [12,13]). The condition (2) represents condition for Equation (1).…”

Section: Local Grid Vs Global Gridmentioning

confidence: 99%

“…The resulting need for grid stability may not correspond with the needs of traders and consumers. Our analysis is based on presumption that electricity price minimization together with load descent [13] represents incentives to social welfare increase because of fact that economic feasibility is set by customers savings. Moreover connection of nodal prices and more effective capital allocation with social welfare has been described e.g.…”

Section: Relation Between Economic and Technical Criterionmentioning

confidence: 99%

See 1 more Smart Citation

Impacts of Smart Grid Concept on Energy Industry

Adamec¹,

Pavlatka²,

Kloubec³

et al. 2013

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Smart grid (SG) is a term that has recently become widely discussed along with the boom of renewable resources (RES-E) and with brand new approach to energy industry. Such phenomena are results from CO 2 emissions mitigation and fight against global climate change, as it is discussed e.g. in [1]. Most of the RES-Es work on principles that do not enable the control of their generation. This fact impacts massively on the electricity grid. It is publicly known that the relatively massive development of non-manageable resources, along with the long-term increasing of energy demand, puts higher and higher requirements on the transmission system's transport capacity. This problem becomes more visible e.g., with future plug-in electric vehicles (PEV) or local renewables (RES-E) expansion. Task for today's engineers is to solve the sustainability of energy industry. The smart grid concept provides one possible way. Our paper therefore discusses main aspects of SG implementation, which are not often publicly discussed. Our paper describes SG concept that compiles with approach to the decentralized power industry, together with nodal prices occurrence. The local congestions in the grid as well as growing amount of consumption (connected with electric vehicles expansion) and local micro-generation can result in the price nodality. Therefore electricity price can differ according to local conditions from price in global grid. The mathematical description of conditions influences grid nodality follows. In the end of the manuscript, the new way of electricity pricing is proposed.

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Section: Local Grid Vs Global Gridmentioning

confidence: 99%

Section: Relation Between Economic and Technical Criterionmentioning

confidence: 99%

Impacts of Smart Grid Concept on Energy Industry

Adamec¹,

Pavlatka²,

Kloubec³

et al. 2013

View full text Add to dashboard Cite

show abstract

“…This work conducted a price sensitivity analysis and found the prices quoted to be sufficient for DSR to operate viably on the Irish system. In Walawalkar et al (2008) the socially optimal range for the incentive trigger point of DSR is priced at between 66-77 $/MWh. This value is system dependent but does indicate the price range DSR should aim for and is in line with the prices chosen here.…”

Section: Dsr Unit Parameters and Modelling Frameworkmentioning

confidence: 99%

“…Recent work has focused on the optimal demand response to pricing within a market (Su and Kirschen, 2008). In Walawalkar et al (2008), the economics of demand response in the PJM market are analysed with the social welfare accrued from subsidies quantified. In Chen et al (1995), a method of integrating direct load control into system operation with the objective of minimising system cost is proposed.…”

Section: Introductionmentioning

confidence: 99%

Demand side resource operation on the Irish power system with high wind power penetration

et al. 2011

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The utilisation of demand side resources is set to increase over the coming years with the advent of advanced metering infrastructure, home area networks and the promotion of increased energy efficiency. Demand side resources are proposed as an energy resource that, through aggregation, can form part of the power system plant mix and contribute to the flexible operation of a power system. A model for demand side resources is proposed here that captures its key characteristics for commitment and dispatch calculations. The model is tested on the all island Irish power system, and the operation of the model is simulated over one year in both a stochastic and deterministic mode, to illustrate the impact of wind and load uncertainty. The results illustrate that demand side resources can contribute to the efficient, flexible operation of systems with high penetrations of wind by replacing some of the functions of conventional peaking plant. Demand side resources are also shown to be capable of improving the reliability of the system, with reserve capability identified as a key requirement in this respect.

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“…Analyses with a short-term focus have been carried out examining real-time or day-ahead pricing (e.g. in the US [37][38][39], the UK [40,41], Slovenia [42] or Denmark [43]), time-of-use and critical peak pricing [44,45] as well as incentive-based response schemes [46,47]. A short-term equilibrium approach provides a bit more insight into the market dynamics of demand response.…”

Section: Introductionmentioning

confidence: 99%