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On the value and potential of demand response in the smart island archipelago

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  • Mimica, Marko
  • Dominković, Dominik Franjo
  • Capuder, Tomislav
  • Krajačić, Goran

Abstract

Existing studies propose different demand response models and often test them on islands that represent test-beds for new technologies. However, proposed models are often simplified and integrated into energy system models that do not consider the existing limitations of the power grid. This study proposes a novel demand response model based on price differentials on the day-ahead electricity market. The model is implemented in the distribution system that considers all relevant grid constraints. The case study is conducted in an archipelago characterised by a medium-voltage distribution system connected to the mainland grid. The obtained results showed that the implementation of the proposed demand response model caused a 0.13 kV voltage deviation which did not cause voltage issues for the observed distribution system. The breakpoint incentive was achieved for an incentive value of 23% of the day-ahead market, and the demand response was not activated for higher values than the breakpoint incentive. The highest savings amounted to 258.7 € for the scenario with the highest flexibility allowed. The results implicate that implementing the demand response model in the grid would benefit all observed stakeholders in the system.

Suggested Citation

  • Mimica, Marko & Dominković, Dominik Franjo & Capuder, Tomislav & Krajačić, Goran, 2021. "On the value and potential of demand response in the smart island archipelago," Renewable Energy, Elsevier, vol. 176(C), pages 153-168.
    • Handle: RePEc:eee:renene:v:176:y:2021:i:c:p:153-168
    DOI: 10.1016/j.renene.2021.05.043
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