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Aggregation of demand side flexibility in a smart grid: A review for European market design

Author

Listed:
  • Cherrelle Eid

    (TU Delft - Delft University of Technology)

  • Paul Codani

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Yurong Chen

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Yannick Perez

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Rudi Hakvoort

    (TU Delft - Delft University of Technology)

Abstract

The increased share of renewable generation and the integration of Distributed Generation (DG) require more electricity system flexibility. One way to increase this flexibility is to use the potentials of demand response (DR). In order to activate the full range of customers in DR, a new market intermediary actor is needed to aggregate the resources in an adequate technical and economical format. These actors, so called "aggregators", can act as flexibility providers to support security of supply considering network, generation and consumers constraints. However, despite their technical and economical utility, aggregators are not self-emerging in many European countries. Consequently, this paper aims at identifying the main barriers accounting for this lack of aggregators in Europe. Eventually this paper provides a policy review for European market designs that support aggregation.

Suggested Citation

  • Cherrelle Eid & Paul Codani & Yurong Chen & Yannick Perez & Rudi Hakvoort, 2015. "Aggregation of demand side flexibility in a smart grid: A review for European market design," Post-Print hal-01230914, HAL.
    • Handle: RePEc:hal:journl:hal-01230914
    DOI: 10.1109/EEM.2015.7216712
    Note: View the original document on HAL open archive server: https://hal.science/hal-01230914
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    References listed on IDEAS

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    Cited by:

    1. Aikaterini Forouli & Emmanouil A. Bakirtzis & Georgios Papazoglou & Konstantinos Oureilidis & Vasileios Gkountis & Luisa Candido & Eloi Delgado Ferrer & Pandelis Biskas, 2021. "Assessment of Demand Side Flexibility in European Electricity Markets: A Country Level Review," Energies, MDPI, vol. 14(8), pages 1-23, April.
    2. Chassin, David P. & Behboodi, Sahand & Djilali, Ned, 2018. "Optimal subhourly electricity resource dispatch under multiple price signals with high renewable generation availability," Applied Energy, Elsevier, vol. 213(C), pages 262-271.
    3. Tahir, Muhammad Faizan & Chen, Haoyong & Khan, Asad & Javed, Muhammad Sufyan & Cheema, Khalid Mehmood & Laraik, Noman Ali, 2020. "Significance of demand response in light of current pilot projects in China and devising a problem solution for future advancements," Technology in Society, Elsevier, vol. 63(C).
    4. Okur, Özge & Heijnen, Petra & Lukszo, Zofia, 2021. "Aggregator’s business models in residential and service sectors: A review of operational and financial aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    5. Jin, Xiaolong & Wu, Qiuwei & Jia, Hongjie, 2020. "Local flexibility markets: Literature review on concepts, models and clearing methods," Applied Energy, Elsevier, vol. 261(C).
    6. Kara, Güray & Pisciella, Paolo & Tomasgard, Asgeir & Farahmand, Hossein & Crespo del Granado, Pedro, 2022. "Stochastic local flexibility market design, bidding, and dispatch for distribution grid operations," Energy, Elsevier, vol. 253(C).
    7. Wang, Y. & Wang, J. & He, W., 2022. "Development of efficient, flexible and affordable heat pumps for supporting heat and power decarbonisation in the UK and beyond: Review and perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    8. Hanny, Lisa & Wagner, Jonathan & Buhl, Hans Ulrich & Heffron, Raphael & Körner, Marc-Fabian & Schöpf, Michael & Weibelzahl, Martin, 2022. "On the progress in flexibility and grid charges in light of the energy transition: The case of Germany," Energy Policy, Elsevier, vol. 165(C).
    9. Cruz, Marco R.M. & Fitiwi, Desta Z. & Santos, Sérgio F. & Catalão, João P.S., 2018. "A comprehensive survey of flexibility options for supporting the low-carbon energy future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 338-353.
    10. Mohseni, Soheil & Brent, Alan C. & Kelly, Scott & Browne, Will N., 2022. "Demand response-integrated investment and operational planning of renewable and sustainable energy systems considering forecast uncertainties: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    11. Ussama Assad & Muhammad Arshad Shehzad Hassan & Umar Farooq & Asif Kabir & Muhammad Zeeshan Khan & S. Sabahat H. Bukhari & Zain ul Abidin Jaffri & Judit Oláh & József Popp, 2022. "Smart Grid, Demand Response and Optimization: A Critical Review of Computational Methods," Energies, MDPI, vol. 15(6), pages 1-36, March.
    12. Joao C. Ferreira & Ana Lucia Martins, 2018. "Building a Community of Users for Open Market Energy," Energies, MDPI, vol. 11(9), pages 1-21, September.
    13. Pied, Marie & Anjos, Miguel F. & Malhamé, Roland P., 2020. "A flexibility product for electric water heater aggregators on electricity markets," Applied Energy, Elsevier, vol. 280(C).
    14. Eid, Cherrelle & Koliou, Elta & Valles, Mercedes & Reneses, Javier & Hakvoort, Rudi, 2016. "Time-based pricing and electricity demand response: Existing barriers and next steps," Utilities Policy, Elsevier, vol. 40(C), pages 15-25.
    15. Tobias Rösch & Peter Treffinger & Barbara Koch, 2021. "Regional Flexibility Markets—Solutions to the European Energy Distribution Grid—A Systematic Review and Research Agenda," Energies, MDPI, vol. 14(9), pages 1-32, April.

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    Keywords

    Aggregators; Demand response; demand management; regulation;
    All these keywords.

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