Analyses on the impact of consumers’ participation by demand response for flexibility procurement

Abstract

Penetration of renewable energy resources is expected to increase further for a sustainable future. However, its intermittent nature creates differences between electricity supply and demand, endangering the stability of the power system. Demand-side management is becoming more crucial in maintaining the balance by procuring flexibility to the grid through demand response (DR) program by regulating the residential consumers’ distributed energy resources usage such as heat pump water heater, battery storage, etc. Coupled with economic incentives such as dynamic electricity pricing, cooperative consumers are also capable of reducing their energy costs. Although the potential of procuring flexibility through residential consumers is massive, the consumers are expected to participate in the DR program aggressively and consistently, which is practically impossible to expect of all consumers. This study presents a constructive DR model in procuring flexibility when viewed from a different angle, by considering the participation status of consumers (PSC). As PSC can depends on many different economical and psychological factors, there are complexities in modelizing it. In this study, two representative factors, achievable consumers’ cost reduction and response fatigue are considered. Those participating are given generous electricity rates to optimize their electricity usage while providing flexibility. By acknowledging different participation levels among consumers and offering generous electricity rates to participants, the program can enhance the overall success of renewable energy integration while fostering grid stability and cost savings. The simulation results further reveal the behavioral patterns of consumers within the DR program and their influence on other stakeholders involved in the initiative.