Demand-Side Flexibility in Power Systems, Structure, Opportunities, and Objectives: A Review for Residential Sector

Abstract

The integration of renewable energy sources (RESs) is rapidly increasing within energy systems worldwide. However, this shift introduces intermittency and uncertainty on the supply side. To hedge against RES intermittency, demand-side flexibility introduces a practical solution. Therefore, further studies are required to unleash demand-side flexibility in power systems. This flexibility is relevant across various sectors of power systems, including residential, industrial, commercial, and agricultural sectors. This paper reviews the key aspects of demand-side flexibility within the residential sector. To achieve this objective, a general introduction to demand flexibility across the four sectors is provided. As a contribution of this paper, and in comparison with previous studies, household appliances are classified based on their flexibility and controllability. The flexibility potential of key residential demands, including heat pumps, district heating, electric vehicles, and battery systems, is then reviewed. Another contribution of this paper is the exploration of demand-side flexibility scheduling under uncertainty, examining three approaches: stochastic programming, robust optimization, and information-gap decision theory. Additionally, the integration of demand flexibility into short-term electricity markets with high-RES penetration is discussed. Finally, the key objective functions and simulation software used in the study of demand-side flexibility are reviewed.