System planning with demand assets in balancing markets

T. Freire-Barceló, F. Martín, A. Sánchez

International Journal of Electrical Power & Energy Systems Vol. 156, pp. 109747-1 - 109747-16

Summary:

Balancing markets will become more and more relevant with the increased volatility in the electricity system due to the increase in the renewable quota. New policies are paving the way for customers flexibility participation as demand response in reserve products. This paper contributes with an assessment of the impact of demand response participation in the reserve market when planning the electricity system’s operation and investment in new technologies. The model used has been conveniently upgraded and a set of scenarios have been raised to conduct the analysis. The residential and services sectors' consumption for heating, cooling, hot water, and electric vehicles are considered as sources of flexibility. Each one has their own modeling to represent their nature. Main findings show that demand response receives and offers more benefits for the system on the wholesale market than in balancing services, although their participation in them is quite relevant. This is due to the decrease in firm capacity investment needs thanks to reducing systems’ peak technologies and the decrease of spillages from renewables. Additionally, increasing demand response percentages in the systems lead to cost reduction. However, there is a limitation associated with an increase of CO2 emissions due to the usage of existing polluting technologies to avoid investments in storages. Finally, flexibility providers are compared to determine their flexible capabilities.

Spanish layman's summary:

Este documento evalúa el efecto de la participación de la respuesta a la demanda en los servicios de equilibrio. Desde la perspectiva del sistema, puede ahorrar hasta un 12% de los costes totales del sistema, aunque la mayor parte de este ahorro procede de su participación en el mercado mayorista.

English layman's summary:

This paper assesses the demand response participation in balancing services effect. From the system perspective it can save up to 12% of total system costs, however most of this savings come from its participation in the wholesale market.

Keywords: Demand responseReservesFRROptimizationFlexibility

JCR Impact Factor and WoS quartile: 5,000 - Q1 (2023)

DOI reference: https://doi.org/10.1016/j.ijepes.2023.109747

Published on paper: February 2024.

Published on-line: January 2024.

Citation:
T. Freire-Barceló, F. Martín, A. Sánchez, System planning with demand assets in balancing markets. International Journal of Electrical Power & Energy Systems. Vol. 156, pp. 109747-1 - 109747-16, February 2024. [Online: January 2024]