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The Economic Impact of Demand-Response Programs on Power Systems. A Survey of the State of the Art

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Book cover Handbook of Networks in Power Systems I

Part of the book series: Energy Systems ((ENERGY))

Abstract

Demand Response (DR) programs, which aim to reduce electricity consumption in times of high energy cost or network constraints by allowing customers to respond to price or quantity signals, are becoming very popular in many electricity systems, frequently associated to smart-grid developments. These programs could entail significant benefits for power systems and the society as a whole. Assessing the magnitude of these benefits is crucial to determine their convenience, especially when there are non negligible costs associated to their implementation (if advanced metering infrastructure or control technologies are needed). Quantifying DR benefits requires first to estimate the changes in demand patterns that can potentially be achieved and then to evaluate the effects of those changes on the complex behavior of power systems, neither of these analyses being trivial. This paper presents a survey of the state of the art of these assessments.

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Acknowledgements

This research has been funded by the GAD Project (www.proyectogad.es) and by the ADDRESS project (funded by the European Community’s Seventh Framework Programme (FP7/2007-2013) under grant agreement n° 207643).

The GAD (Active Demand Management) project, which is financed by the Center for Industrial Technological Development (CDTI), Spanish Ministry of Industry, Trade and Tourism, has as objective the research and development of solutions for the optimization of electricity consumption in low and middle voltage consumers. The project consortium is led by Iberdrola Distribución Eléctrica S.A, and features other 14 firms: Red Eléctrica de España, Unión Fenosa Distribución, Unión Fenosa Metra, Iberdrola, Orbis Tecnología Eléctrica, ZIV Media, DIMAT, Siemens, Fagor Electrodomésticos, BSH Electrodomésticos España, Ericsson España, GTD Sistemas de Información, Acceda Mundo Digital and Airzone. There are also other 14 research centers collaborating in the project.

Some parts of the text draw extensively from reports issued within the ADDRESS project.

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Authors and Affiliations

  1. Instituto de Investigación Tecnológica, Universidad Pontificia Comillas, Santa Cruz de Marcenado 26, 28015, Madrid, Spain

    Adela Conchado & Pedro Linares

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  1. Adela Conchado
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  2. Pedro Linares
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Editors and Affiliations

  1. Industrial and Systems Engineering, University of Florida, Weil Hall 303, Gainesville, 32611, Florida, USA

    Alexey Sorokin

  2. Division of Economics and Business, Colorado School of Mines, 15th Street 816, Golden, 80401, Colorado, USA

    Steffen Rebennack

  3. Department of Industrial & Systems Engin, University of Florida, Weil Hall 401, Gainesville, 32611-6595, Florida, USA

    Panos M. Pardalos

  4. Research & Development, EnerCoRD - Energy Consulting,, Plastira Street 4, Athens, 171 21, Greece

    Niko A. Iliadis

  5. Rio Praia de Botafogo, Centro Empresarial, -A-Botafogo 2281701, Rio de Janeiro, 22250-040, Rio de Janeiro, Brazil

    Mario V. F. Pereira

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Conchado, A., Linares, P. (2012). The Economic Impact of Demand-Response Programs on Power Systems. A Survey of the State of the Art. In: Sorokin, A., Rebennack, S., Pardalos, P., Iliadis, N., Pereira, M. (eds) Handbook of Networks in Power Systems I. Energy Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23193-3_11

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