Next Article in Journal
The Role of Charging Infrastructure in Electric Vehicle Implementation within Smart Grids
Next Article in Special Issue
A Two-Step Methodology for Free Rider Mitigation with an Improved Settlement Algorithm: Regression in CBL Estimation and New Incentive Payment Rule in Residential Demand Response
Previous Article in Journal
Catalytic Hydrotreatment of Microalgae Biocrude from Continuous Hydrothermal Liquefaction: Heteroatom Removal and Their Distribution in Distillation Cuts
Previous Article in Special Issue
Analytical Assessment for System Peak Reduction by Demand Responsive Resources Considering Their Operational Constraints in Wholesale Electricity Market
Article Menu

Export Article

Open AccessArticle
Energies 2018, 11(12), 3361; https://doi.org/10.3390/en11123361

Benefits of a Demand Response Exchange Participating in Existing Bulk-Power Markets

Department of Electrical Engineering and Computer Science, South Dakota State University, Brookings, SD 57007, USA
This manuscript is greatly expanded and improved on one of our previous conference publications titled “A Framework for Integrating Demand Response Into Bulk-Power Markets”.
*
Author to whom correspondence should be addressed.
Received: 1 November 2018 / Revised: 20 November 2018 / Accepted: 20 November 2018 / Published: 1 December 2018
(This article belongs to the Special Issue Demand Response in Electricity Markets)
Full-Text   |   PDF [848 KB, uploaded 1 December 2018]   |  

Abstract

In most U.S. market sponsored demand response (DR) programs, revenue earned from energy markets has been relatively low compared to DR used for capacity markets and ancillary services. This paper presents an aggregated DR model participating in the bulk-power market as a service through a pool-based entity called demand response exchange (DRX). Using the DRX structure, DR providers can participate in energy markets as a service to benefit bulk-power market entities. The benefits and challenges to each market entity using DR-as-a-service are presented in an extended review. The DRX model in this study is a market entity that operates with the day-ahead market to select DR offers that minimize electric utility payments. A case study was performed using the proposed DRX model on the IEEE 24-bus system, augmented to represent actual bulk-power market prices to study factors that influence utility payments under the DRX-market paradigm. Two high-price days of the PJM market were simulated, and it was shown for a single day on the augmented test case that spending $69,955 for DR-as-a-service results in a reduction of utility payments of $864,199. The day-ahead generator supply curve, network congestion, and DR curtailment were found to be the most influencing factors that impact the benefit of using DR-as-a-service. View Full-Text
Keywords: demand response (DR); DR exchange (DRX); DR aggregators; electricity markets demand response (DR); DR exchange (DRX); DR aggregators; electricity markets
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Durvasulu, V.; Hansen, T.M. Benefits of a Demand Response Exchange Participating in Existing Bulk-Power Markets. Energies 2018, 11, 3361.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Energies EISSN 1996-1073 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top