Which electricity market design to encourage the development of demand response?

Which electricity market design to encourage the development of demand response? / Vincent Rious, Fabien Roques and Yannick Perez. San Domenico di Fiesole : Robert Schuman Centre for advanced studies, 2012, 25 p. (RSCAS 2012/12)

http://www.florence-school.eu/portal/page/portal/LDP_HOME/Publications/Working%20papers/2012/RSCAS-2012-12.pdf

Demand response is a cornerstone problem in electricity markets under climate change constraint. Most liberalized electricity markets have a poor track record at encouraging the deployment of smart meters and the development of demand response. In Europe, different models are considered for demand response, from a development under a regulated regime to a development under competitive perspectives. In this paper, focusing on demand response and smart metering for mid-size and small consumers, we investigate which types of market signals should be sent to demand manager to see demand response emerge as a competitive activity. Using data from the French power system over the last 8 years, we compare the possible market design options to allow demand response to develop. Our simulations demonstrate that with the current market rules, demand response is not a profitable activity in the French electricity industry. Introducing a reserve and/or capacity remuneration could bring additional revenues to demand response providers and improve incentives to put in place demand response programs in a market environment. (© RSCAS)

 



Citer ce billet
Danièle Revel (2012, 4 octobre). Which electricity market design to encourage the development of demand response? Veille énergie climat. Consulté le 27 mai 2024, à l’adresse https://doi.org/10.58079/o9v6

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