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Measuring the Capacity Impacts of Demand Response

Author

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  • Earle, Robert
  • Kahn, Edward P.
  • Macan, Edo

Abstract

Critical peak pricing and peak time rebate programs offer benefits by increasing system reliability, and therefore, reducing capacity needs of the electric power system. These benefits, however, decrease substantially as the size of the programs grows relative to the system size. More flexible schemes for deployment of demand response can help address the decreasing returns to scale in capacity value, but more flexible demand response has decreasing returns to scale as well.

Suggested Citation

  • Earle, Robert & Kahn, Edward P. & Macan, Edo, 2009. "Measuring the Capacity Impacts of Demand Response," The Electricity Journal, Elsevier, vol. 22(6), pages 47-58, July.
    • Handle: RePEc:eee:jelect:v:22:y:2009:i:6:p:47-58
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    Citations

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    Cited by:

    1. Adela Conchado & Pedro Linares, 2010. "The Economic Impact of Demand-Response Programs on Power Systems. A survey of the State of the Art," Working Papers 02-2010, Economics for Energy.
    2. De Jonghe, C. & Hobbs, B. F. & Belmans, R., 2011. "Integrating short-term demand response into long-term investment planning," Cambridge Working Papers in Economics 1132, Faculty of Economics, University of Cambridge.
    3. Andrew Blohm & Jaden Crawford & Steven A. Gabriel, 2021. "Demand Response as a Real-Time, Physical Hedge for Retail Electricity Providers: The Electric Reliability Council of Texas Market Case Study," Energies, MDPI, vol. 14(4), pages 1-16, February.
    4. Athir Nouicer & Leonardo Meeus & Erik Delarue, 2022. "Demand-side flexibility in distribution grids: voluntary versus mandatory contracting," RSCAS Working Papers 2022/55, European University Institute.
    5. Spyros Giannelos & Predrag Djapic & Danny Pudjianto & Goran Strbac, 2020. "Quantification of the Energy Storage Contribution to Security of Supply through the F-Factor Methodology," Energies, MDPI, vol. 13(4), pages 1-15, February.
    6. Claire Bergaentzlé & Cédric Clastres & Haikel Khalfallah, 2014. "Demand-side management and European environmental and energy goals: an optimal complementary approach," Post-Print halshs-00928678, HAL.
    7. Richardson, David B. & Harvey, L.D. Danny, 2015. "Optimizing renewable energy, demand response and energy storage to replace conventional fuels in Ontario, Canada," Energy, Elsevier, vol. 93(P2), pages 1447-1455.
    8. Stikvoort, Britt & El Gohary, Fouad & Nilsson, Anders & Bartusch, Cajsa, 2024. "Serving two masters – How dual price signals can undermine demand flexibility," Energy Policy, Elsevier, vol. 185(C).
    9. V. Kerry Smith, 2011. "How Can Policy Encourage Economically Sensible Climate Adaptation?," NBER Chapters, in: The Design and Implementation of US Climate Policy, pages 229-242, National Bureau of Economic Research, Inc.
    10. Nolan, Sheila & O’Malley, Mark, 2015. "Challenges and barriers to demand response deployment and evaluation," Applied Energy, Elsevier, vol. 152(C), pages 1-10.
    11. Olkkonen, Ville & Rinne, Samuli & Hast, Aira & Syri, Sanna, 2017. "Benefits of DSM measures in the future Finnish energy system," Energy, Elsevier, vol. 137(C), pages 729-738.
    12. Siano, Pierluigi, 2014. "Demand response and smart grids—A survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 461-478.
    13. Sheikhi Fini, A. & Parsa Moghaddam, M. & Sheikh-El-Eslami, M.K., 2013. "An investigation on the impacts of regulatory support schemes on distributed energy resource expansion planning," Renewable Energy, Elsevier, vol. 53(C), pages 339-349.
    14. Bergaentzlé, Claire & Clastres, Cédric & Khalfallah, Haikel, 2014. "Demand-side management and European environmental and energy goals: An optimal complementary approach," Energy Policy, Elsevier, vol. 67(C), pages 858-869.
    15. ISOGAWA Daiya & OHASHI Hiroshi & ANAI Tokunari, 2022. "Role of Advance Notice on High-priced Hours: Critical peak pricing on industrial demand," Discussion papers 22068, Research Institute of Economy, Trade and Industry (RIETI).
    16. Kim, Jin-Ho & Shcherbakova, Anastasia, 2011. "Common failures of demand response," Energy, Elsevier, vol. 36(2), pages 873-880.
    17. Nouicer, Athir & Meeus, Leonardo & Delarue, Erik, 2023. "Demand-side flexibility in distribution grids: Voluntary versus mandatory contracting," Energy Policy, Elsevier, vol. 173(C).

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