An overview of Demand Response: Key-elements and international experience

Abstract

The increasing penetration of renewable energy sources (RES) in power systems intensifies the need of enhancing the flexibility in grid operations in order to accommodate the uncertain power output of the leading RES such as wind and solar generation. Utilities have been recently showing increasing interest in developing Demand Response (DR) programs in order to match generation and demand in a more efficient way. Incentive and price-based DR programs aim at enabling the demand side in order to achieve a range of operational and economic advantages, towards developing a more sustainable power system structure. The contribution of the presented study is twofold. First, a complete and up-to-date overview of DR enabling technologies, programs and consumer response types is presented. Furthermore, the benefits and the drivers that have motivated the adoption of DR programs, as well as the barriers that may hinder their further development, are thoroughly discussed. Second, the international DR status quo is identified by extensively reviewing existing programs in different regions.