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Profitability analysis on demand-side flexibility: A review

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  • Forero-Quintero, Jose-Fernando
  • Villafáfila-Robles, Roberto
  • Barja-Martinez, Sara
  • Munné-Collado, Ingrid
  • Olivella-Rosell, Pol
  • Montesinos-Miracle, Daniel

Abstract

Flexibility has emerged as an optimal solution to the increasing uncertainty in power systems produced by the continuous development and penetration of distributed generation based on renewable energy. Many studies have shown the benefits for system operators and stakeholders of diverse ancillary services derived from demand-side flexibility. Cost-benefit analysis on these flexibility services should be carried out to determine the profitable applications, as well as the required adjustments on energy market, price schemes and normative framework to maximize the positive impacts of the available flexibility. This paper endeavors to review the main topics, variables and indexes related to the profitability analysis on demand-side flexibility, as well as the influence of energy markets, pricing and standards on revenue maximization. The conclusions drawn from this review demonstrate that the profitability of flexibility services considerably de-pends on energy market structure, involved assets, electricity prices and current ancillary services remuneration.

Suggested Citation

  • Forero-Quintero, Jose-Fernando & Villafáfila-Robles, Roberto & Barja-Martinez, Sara & Munné-Collado, Ingrid & Olivella-Rosell, Pol & Montesinos-Miracle, Daniel, 2022. "Profitability analysis on demand-side flexibility: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    • Handle: RePEc:eee:rensus:v:169:y:2022:i:c:s1364032122007882
    DOI: 10.1016/j.rser.2022.112906
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