Abstract
Priority service and multilevel demand subscription have been proposed as two alternative methods for the mobilization of residential demand response. Whereas priority service relies on the differentiation of electricity service according to reliability, multilevel demand subscription further differentiates electricity service according to duration. Despite its increased complexity, multilevel demand subscription promises increased operational efficiency, as it permits a finer differentiation of consumer classes by the utility. It also allows households to reduce their electricity bills relative to priority service. This paper proposes a framework for quantifying these effects. We design a modeling approach for evaluating the performance of these different aggregator service offerings in a system with utility-scale renewable supply, residential renewable supply, and residential storage. We compare priority service to multilevel demand subscription, and discuss the implications of these different residential demand response options on operational efficiency and consumer expenditures for electricity service on a realistic model of the Belgian power market. We show how the comparison between the two schemes is affected by the adoption of a different time resolution in a detailed case study.
Highlights
R ECENT developments in electricity markets indicate the increasing engagement of demand-side flexibility in power system operations [1], [2]
Residential flexibility may be exploited in order to enable the integration of distributed renewable supply without imposing the need for exorbitant investment costs in distribution network infrastructure [5]
This framework is applied to a realistic model of the Belgian power market for two different time resolutions. By comparing these two time resolutions, this study demonstrates the importance of using a more refined time scale in order to quantify the benefits of demand response more accuraltey in production simulation models
Summary
R ECENT developments in electricity markets indicate the increasing engagement of demand-side flexibility in power system operations [1], [2]. The proliferation of storage and renewable resources at the medium and low-voltage grid has placed an increasing need for improved coordination between transmission and distribution systems. Residential flexibility may be exploited in order to enable the integration of distributed renewable supply without imposing the need for exorbitant investment costs in distribution network infrastructure [5]. Poor judgement in the pricing of residential flexibility is best exemplified through the recent backlash against net metering [6]. It has recently been retracted due to adverse distributional effects [7] and due to the inability of the existing distribution infrastructure to support the roll-out of solar panels that has been induced by net metering
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