Methodology for the identification, evaluation and prioritization of market handicaps which prevent the implementation of Demand Response: Application to European electricity markets

Abstract

This paper presents a methodology for the identification, analysis and comparative assessment of the handicaps which nowadays prevent the higher implementation of Demand Response (DR) in the electricity market. Its application provides a hierarchical organization of handicaps from the most critical to the less critical and then, from the easiest to the most difficult to overcome. This makes possible to determine which barriers would be a priority, which may indicate the direction of regulatory changes to properly address these handicaps and so, stimulating a higher participation of the demand side in electricity markets. After applying the methodology to three European countries, 34 handicaps have been identified, analysing which of these handicaps affect such stakeholders as grid operators, retailers and customers and how these stakeholders are affected. For each handicap, the criticality and difficulty to overcome the different handicaps have been studied, based on detailed information 1

The Impact of Substituting Production Technologies on the Economic Demand Response Potential in Industrial Processes

“…Under such a scenario, only in the case where the monetary rewards for demand response are higher than the opportunity costs for lost production of the final good, demand response measures will be implemented by an enterprise. Note that due to the comparatively low incentives for demand response in the current electricity system [10], in the previous section we have already assumed that there is no economically viable possibility for a The respective capacity utilization of each technology can serve as a first indicator of the available technical demand response potential: The lower the price for recovered paper, the higher the capacity utilization. An average capacity utilization of 100 percent implies that there is no economic potential for demand response at all.…”

“…Under such a scenario, only in the case where the monetary rewards for demand response are higher than the opportunity costs for lost production of the final good, demand response measures will be implemented by an enterprise. Note that due to the comparatively low incentives for demand response in the current electricity system [10], in the previous section we have already assumed that there is no economically viable possibility for a reduction in the planned production output and that the demand for the final output is therefore seen as fixed for each period.…”

“…Even though the industry has established energy management systems including smart meters for automated data exchange and coordination of machines [7,8], models that analyze demand response measures in the industrial sector are outnumbered by a scientific focus on the residential sector [9]. In direct consequence, a large share of the demand response potential in industrial processes is still unexploited [10,11].…”

Certification prerequisites for activities related to the trading of demand response resources

“…Some examples about strategies which can be used by end-users to take advantage of their electric devices for DR purposes can be found in [35][36][37], specially focused on control applications for acclimatization devices. Finally, some research such as [38] and [39] is focused on the identification of market barriers which prevent the massive utilization of DR resources.…”

Application of demand response strategies for the management of natural gas systems under the smart grid configuration: development of a methodology for technical, economic and environmental evaluation.

“…One of the most recent examples can be found in [66], which results from the European project DRIP. Among other results, this project produced a methodology for the systematic evaluation of handicaps which prevent the implementation of DR strategies in the operation of power systems.…”