How to engage consumers in demand response: A contract perspective

Abstract

Nowadays, the European electricity systems are evolving towards a generation mix that is more decentralised, less predictable and less flexible to operate. In this context, additional flexibility is expected to be provided by the demand side. Thus, how to engage consumers to participate in demand response is becoming a pressing issue. In this paper, we provide an analytical framework to assess consumers' potential and willingness to participate in active demand response from a contract perspective. On that basis, we present policy recommendations to empower and protect consumers in their shift to active demand response participants.

Prosumer bidding and scheduling in electricity markets

“…Next, the load units are divided into inflexible, curtailable and shiftable ones. The figure is an extension of the work by He et al (2013). As described earlier, load and generation will be more difficult to forecast and need increased attention, see Figure 1.4.…”

“…Another option is that this task is handled by a third party that professionalizes in flexibility services. We denote this role the Flexibility aggregator He et al, 2013;Li et al, 2013), since it aggregates many small volumes of flexibility. Flexibility contracts must be entered between the DSO and the Flexibility aggregator on one side, and between the Flexibility aggregator and each of the prosumers on the other.…”

Analysis on the potential of an energy aggregator for domestic users in the Italian electricity system

“…Consequently, DR is either a tool to reduce or postpone expensive investments on the grid upgrades [20][21][22][23]. It mainly consists of temporally shifting the electrical demand when more renewable energy is available, simplifying, on one hand, all of balancing issues (global and local), on the other hand, diminishing the associated overall system costs [24][25][26][27][28][29].…”

Household electricity consumers’ incentive to choose dynamic pricing under different taxation schemes

“…As the effectiveness of new pricing schemes depends largely on individual decisions of households, this article explores implications of dynamic electricity pricing in Denmark from a household consumer perspective. While theoretical gains are mostly undisputed, it remains an open question whether electricity retail customers find it attractive to adopt dynamic pricing schemes and responsive behavior …”