Is Deferrable Demand an Effective Alternative to Upgrading Transmission Capacity?

Abstract

AbstractWith high penetrations of variable generation from wind turbines in remote locations, transmission capacity may be inadequate to transfer this relatively inexpensive source of generation to demand centers. The major reason is that transmission corridors into load centers are often congested when the system load is high, and additional wind generation is effectively shut out. In contrast, when the system load is low and the wind is blowing, wind generation may be able to meet most of the load throughout the network subject to the specific limitations of the network’s topology. This paper compares the system costs of two very different ways of reducing congestion on the network to increase the annual amount of potential wind capacity dispatched. The first way uses the standard supply side solution of upgrading transmission capacity on the network. The second way uses a demand-side approach in which deferrable demand shifts the system load from on-peak periods to off-peak periods. In addition, the de...