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Demand, Customer Base-Line And Demand Response In The Electricity Market: A Survey

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  • Almas Heshmati

Abstract

The increasing use of demand-side management, as a tool to reliably meet electricity demands at peak time, has stimulated interest among researchers, consumers and producer organiza-tions, managers, regulators and policymakers. This research reviews the growing literature on models which are used to study demand, customer base-line (CBL) and demand response in the electricity market. After characterizing the general demand models, the CBL, based on which the demand response models are studied, is reviewed. Given the experience gained from the review and existing conditions, the study combines an appropriate model for each case for a possible application to the electricity market; moreover, it discusses the implications of the results. In the literature, these aspects are studied independently. The main contribution of this survey is attributed to the treatment of the three issues as sequentially interdependent. The review is expected to enhance the understanding of the demand, CBL and demand response in the electricity market and their relationships. The objective is conducted through a combination of demand and supply side managements in order to reduce demand through different demand response programs during peak times. This enables electricity suppliers to save costly electricity generation and at the same time reduce energy vulnerability.

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  • Almas Heshmati, 2014. "Demand, Customer Base-Line And Demand Response In The Electricity Market: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 862-888, December.
    • Handle: RePEc:bla:jecsur:v:28:y:2014:i:5:p:862-888
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    2. Jean-Claude Berthélemy & Arnaud Millien, 2018. "Impact of Decentralized Electrification Projects on Sustainable Development: A Meta-Analysis," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01922517, HAL.
    3. Heshmati, Almas & Abolhosseini, Shahrouz, 2014. "Market Design for Trading Commoditized Renewable Energy," Working Paper Series in Economics and Institutions of Innovation 372, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Heshmati, Almas & Kumbhakar, Subal C. & Sun, Kai, 2014. "Estimation of productivity in Korean electric power plants: A semiparametric smooth coefficient model," Energy Economics, Elsevier, vol. 45(C), pages 491-500.
    5. Vallés, Mercedes & Bello, Antonio & Reneses, Javier & Frías, Pablo, 2018. "Probabilistic characterization of electricity consumer responsiveness to economic incentives," Applied Energy, Elsevier, vol. 216(C), pages 296-310.
    6. Niels Framroze Møller & Laura Mørch Andersen & Lars Gårn Hansen & Carsten Lynge Jensen, 2018. "Can pecuniary and environmental incentives via SMS messaging make households adjust their intra-day electricity demand to a fluctuating production?," IFRO Working Paper 2018/06, University of Copenhagen, Department of Food and Resource Economics.
    7. Almas Heshmati, 2018. "An empirical survey of the ramifications of a green economy," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 12(1), pages 53-85.
    8. Heshmati, Almas, 2015. "A Review of the Circular Economy and its Implementation," IZA Discussion Papers 9611, Institute of Labor Economics (IZA).
    9. Khayyat, Nabaz T. & Heshmati, Almas, 2014. "Production Risk, Energy Use Efficiency and Productivity of Korean Industries," IZA Discussion Papers 8081, Institute of Labor Economics (IZA).
    10. Junghee Han & Almas Heshmati & Masoomeh Rashidghalam, 2020. "Circular Economy Business Models with a Focus on Servitization," Sustainability, MDPI, vol. 12(21), pages 1-17, October.
    11. Møller, Niels Framroze & Andersen, Laura Mørch & Hansen, Lars Gårn & Jensen, Carsten Lynge, 2019. "Can pecuniary and environmental incentives via SMS messaging make households adjust their electricity demand to a fluctuating production?," Energy Economics, Elsevier, vol. 80(C), pages 1050-1058.
    12. Genc, Talat S., 2016. "Measuring demand responses to wholesale electricity prices using market power indices," Energy Economics, Elsevier, vol. 56(C), pages 247-260.

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