Abstract
Demand response is a key element of future power systems due to its capacity to defer grid investments, improve demand participation in the market, and absorb renewable energy source variations. In this regard, demand response can play an important role in delivering ancillary services to power systems. The lack of standardization and ancillary services programs prepared for traditional generators have blocked the participation of demand in these services. Nowadays, increasing needs to ensure the security of supply, renewable fluctuations, and information and communication technology advances are boosting the interest in demand response products to deliver ancillary services. While countries have had lengthy experience with these programs, others are starting from almost zero to develop these programs. To our knowledge, no analysis or standardized comparison exists of the different parameters and prices of demand response in ancillary services among different countries. Our study reviews more than 20 power systems around the world and their programs to classify them according to standard demand response parameters. At the end of the paper we discuss the main characteristics and prices that face demand response in ancillary services markets and a series of policy recommendations to policymakers to improve the deployment on demand participation in ancillary services.
Highlights
IntroductionThe integration of renewable energy sources (RES) is necessary to achieve the Climate Change objectives [1], but it requires new solutions and more flexible power systems to achieve it at a reasonable cost [2]
Received: 18 January 2021Power systems are under a period of rapid evolution
Countries like South Africa are investigating and proving the viability of demand side management and the regulation of electricity demand from the consumer side [87]. As it is proved with the range of Demand Response (DR) products from different continents presented in this review, many countries all over the world have developed and keep improving their programs to manage Demand Side Resources (DSR)
Summary
The integration of renewable energy sources (RES) is necessary to achieve the Climate Change objectives [1], but it requires new solutions and more flexible power systems to achieve it at a reasonable cost [2]. Operators use all kinds of flexible resources to preserve balance, ensure the security of supply, and improve the efficiency of the system. New flexibility resources as Demand Side Management (DSM) require operators and policymakers to work together to create the appropriate legal and economic framework [5] and to establish the terms of flexibility. DSM solutions are a valuable tool to smooth demand peaks [8], avoid blackouts, reduce investments on the grid [9] and absorb fluctuations of Renewable Energy
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