Enhancing market access of demand response through generation forecast updates

Abstract

Enhancing market access of demand response through generation forecast updates.In: IEEE N.B. When citing this work, cite the original published paper. Abstract-Advances in communication infrastructure and electric appliances have enabled demand side participation in power system operation. However, the full potential of demand flexibility is yet to be exploited. Existing demand response programs require flexibility in a set time frame from the electricity consumers in reaction to economic incentives. For a more detailed qualitative analysis of consumer flexibility, not only price but also notice time are imperative parameters. The former has been studied in numerous references whereas the impact of the latter has not yet been examined in depth. This paper presents a market model of demand response that enhances an efficient use of flexible consumers by hourly updates. The consequences of flexible electricity consumers are studied in a Real Time Pricing model with continuous forecast updates, where elasticity is subject to notice time. A case study is presented using data from Sweden. We conclude that current demand response programs are not optimally designed to integrate consumer flexibility that changes with the notice time. ©2017 IEEEIndex Terms-demand side management, power system simulation, power system economics, smart grids, wind energy integration.