A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market
The energy transition has shown that fossil generation can be complemented with renewable energy and other resources capable of providing flexibility to the energy system’s operation, in compliance with the wholesale electricity market’s rules. This paper proposes a market-based methodology for intr...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2022-02-01
|
| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/15/4/1307 |
| _version_ | 1797480826572636160 |
|---|---|
| author | Máximo A. Domínguez-Garabitos Víctor S. Ocaña-Guevara Félix Santos-García Adriana Arango-Manrique Miguel Aybar-Mejía |
| author_facet | Máximo A. Domínguez-Garabitos Víctor S. Ocaña-Guevara Félix Santos-García Adriana Arango-Manrique Miguel Aybar-Mejía |
| author_sort | Máximo A. Domínguez-Garabitos |
| collection | DOAJ |
| description | The energy transition has shown that fossil generation can be complemented with renewable energy and other resources capable of providing flexibility to the energy system’s operation, in compliance with the wholesale electricity market’s rules. This paper proposes a market-based methodology for introducing flexible demand in the energy dispatch, optimizing the scheduling of electricity system operation in the short-term, and considers the challenge of implementing an incentive scheme for participants in demand-response programs. The scheme includes the criteria of the elasticity of substitution and a renewable energy quota. This methodology is focused on a strategic demand shift to minimize the cost of supply; increase the dispatch of renewable energy; control CO<sub>2</sub> emissions; and satisfy the generation, demand, and transmission operating constraints. These conditions encourage the development of a simulation tool that allows a sensitivity analysis to aid decision-making by operators and agents. The proposed methodology optimizes the operational cost of generation supply and specific performance indicators to determine the percentages of demand shift, the amount of CO<sub>2</sub> emissions, the ratio of unserved power, the demand benefits obtained from an incentive scheme, and the natural market behavior. |
| first_indexed | 2024-03-09T22:05:44Z |
| format | Article |
| id | doaj.art-932bbffd63f6400ab6569be09d6b4882 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-09T22:05:44Z |
| publishDate | 2022-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-932bbffd63f6400ab6569be09d6b48822023-11-23T19:41:59ZengMDPI AGEnergies1996-10732022-02-01154130710.3390/en15041307A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity MarketMáximo A. Domínguez-Garabitos0Víctor S. Ocaña-Guevara1Félix Santos-García2Adriana Arango-Manrique3Miguel Aybar-Mejía4Basic Sciences, Instituto Tecnológico de Santo Domingo, Santo Domingo 10602, Dominican RepublicBasic Sciences, Instituto Tecnológico de Santo Domingo, Santo Domingo 10602, Dominican RepublicBasic Sciences, Instituto Tecnológico de Santo Domingo, Santo Domingo 10602, Dominican RepublicDepartment of Electrical and Electronic Engineering, Universidad del Norte, Barranquilla 080001, ColombiaEngineering Area, Instituto Tecnológico de Santo Domingo, Santo Domingo 10602, Dominican RepublicThe energy transition has shown that fossil generation can be complemented with renewable energy and other resources capable of providing flexibility to the energy system’s operation, in compliance with the wholesale electricity market’s rules. This paper proposes a market-based methodology for introducing flexible demand in the energy dispatch, optimizing the scheduling of electricity system operation in the short-term, and considers the challenge of implementing an incentive scheme for participants in demand-response programs. The scheme includes the criteria of the elasticity of substitution and a renewable energy quota. This methodology is focused on a strategic demand shift to minimize the cost of supply; increase the dispatch of renewable energy; control CO<sub>2</sub> emissions; and satisfy the generation, demand, and transmission operating constraints. These conditions encourage the development of a simulation tool that allows a sensitivity analysis to aid decision-making by operators and agents. The proposed methodology optimizes the operational cost of generation supply and specific performance indicators to determine the percentages of demand shift, the amount of CO<sub>2</sub> emissions, the ratio of unserved power, the demand benefits obtained from an incentive scheme, and the natural market behavior.https://www.mdpi.com/1996-1073/15/4/1307demand responseelasticity of substitutionrenewable energywholesale electricity market |
| spellingShingle | Máximo A. Domínguez-Garabitos Víctor S. Ocaña-Guevara Félix Santos-García Adriana Arango-Manrique Miguel Aybar-Mejía A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market Energies demand response elasticity of substitution renewable energy wholesale electricity market |
| title | A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market |
| title_full | A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market |
| title_fullStr | A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market |
| title_full_unstemmed | A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market |
| title_short | A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market |
| title_sort | methodological proposal for implementing demand shifting strategies in the wholesale electricity market |
| topic | demand response elasticity of substitution renewable energy wholesale electricity market |
| url | https://www.mdpi.com/1996-1073/15/4/1307 |
| work_keys_str_mv | AT maximoadominguezgarabitos amethodologicalproposalforimplementingdemandshiftingstrategiesinthewholesaleelectricitymarket AT victorsocanaguevara amethodologicalproposalforimplementingdemandshiftingstrategiesinthewholesaleelectricitymarket AT felixsantosgarcia amethodologicalproposalforimplementingdemandshiftingstrategiesinthewholesaleelectricitymarket AT adrianaarangomanrique amethodologicalproposalforimplementingdemandshiftingstrategiesinthewholesaleelectricitymarket AT miguelaybarmejia amethodologicalproposalforimplementingdemandshiftingstrategiesinthewholesaleelectricitymarket AT maximoadominguezgarabitos methodologicalproposalforimplementingdemandshiftingstrategiesinthewholesaleelectricitymarket AT victorsocanaguevara methodologicalproposalforimplementingdemandshiftingstrategiesinthewholesaleelectricitymarket AT felixsantosgarcia methodologicalproposalforimplementingdemandshiftingstrategiesinthewholesaleelectricitymarket AT adrianaarangomanrique methodologicalproposalforimplementingdemandshiftingstrategiesinthewholesaleelectricitymarket AT miguelaybarmejia methodologicalproposalforimplementingdemandshiftingstrategiesinthewholesaleelectricitymarket |