A Critical Review of Demand Response Products as Resource for Ancillary Services: International Experience and Policy Recommendations

Demand response is a key element of future power systems due to its capacity to defer grid investments, improve demand participation in the market, and absorb renewable energy source variations. In this regard, demand response can play an important role in delivering ancillary services to power syst...

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Main Authors: David Ribó-Pérez, Luis Larrosa-López, David Pecondón-Tricas, Manuel Alcázar-Ortega
Format: Article
Language:English
Published: MDPI AG 2021-02-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/14/4/846
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author David Ribó-Pérez
Luis Larrosa-López
David Pecondón-Tricas
Manuel Alcázar-Ortega
author_facet David Ribó-Pérez
Luis Larrosa-López
David Pecondón-Tricas
Manuel Alcázar-Ortega
author_sort David Ribó-Pérez
collection DOAJ
description Demand response is a key element of future power systems due to its capacity to defer grid investments, improve demand participation in the market, and absorb renewable energy source variations. In this regard, demand response can play an important role in delivering ancillary services to power systems. The lack of standardization and ancillary services programs prepared for traditional generators have blocked the participation of demand in these services. Nowadays, increasing needs to ensure the security of supply, renewable fluctuations, and information and communication technology advances are boosting the interest in demand response products to deliver ancillary services. While countries have had lengthy experience with these programs, others are starting from almost zero to develop these programs. To our knowledge, no analysis or standardized comparison exists of the different parameters and prices of demand response in ancillary services among different countries. Our study reviews more than 20 power systems around the world and their programs to classify them according to standard demand response parameters. At the end of the paper we discuss the main characteristics and prices that face demand response in ancillary services markets and a series of policy recommendations to policymakers to improve the deployment on demand participation in ancillary services.
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spelling doaj.art-db81299ba98341d3a32ea88dbbf0fdc62023-12-03T12:35:48ZengMDPI AGEnergies1996-10732021-02-0114484610.3390/en14040846A Critical Review of Demand Response Products as Resource for Ancillary Services: International Experience and Policy RecommendationsDavid Ribó-Pérez0Luis Larrosa-López1David Pecondón-Tricas2Manuel Alcázar-Ortega3Institute for Energy Engineering, Universitat Politècnica de València Camí de Vera S/N, 46022 Valencia, SpainInstitute for Energy Engineering, Universitat Politècnica de València Camí de Vera S/N, 46022 Valencia, SpainInstitute for Energy Engineering, Universitat Politècnica de València Camí de Vera S/N, 46022 Valencia, SpainInstitute for Energy Engineering, Universitat Politècnica de València Camí de Vera S/N, 46022 Valencia, SpainDemand response is a key element of future power systems due to its capacity to defer grid investments, improve demand participation in the market, and absorb renewable energy source variations. In this regard, demand response can play an important role in delivering ancillary services to power systems. The lack of standardization and ancillary services programs prepared for traditional generators have blocked the participation of demand in these services. Nowadays, increasing needs to ensure the security of supply, renewable fluctuations, and information and communication technology advances are boosting the interest in demand response products to deliver ancillary services. While countries have had lengthy experience with these programs, others are starting from almost zero to develop these programs. To our knowledge, no analysis or standardized comparison exists of the different parameters and prices of demand response in ancillary services among different countries. Our study reviews more than 20 power systems around the world and their programs to classify them according to standard demand response parameters. At the end of the paper we discuss the main characteristics and prices that face demand response in ancillary services markets and a series of policy recommendations to policymakers to improve the deployment on demand participation in ancillary services.https://www.mdpi.com/1996-1073/14/4/846demand responseancillary servicesENTSO-EFERCstandardizationrestoration reserves
spellingShingle David Ribó-Pérez
Luis Larrosa-López
David Pecondón-Tricas
Manuel Alcázar-Ortega
A Critical Review of Demand Response Products as Resource for Ancillary Services: International Experience and Policy Recommendations
Energies
demand response
ancillary services
ENTSO-E
FERC
standardization
restoration reserves
title A Critical Review of Demand Response Products as Resource for Ancillary Services: International Experience and Policy Recommendations
title_full A Critical Review of Demand Response Products as Resource for Ancillary Services: International Experience and Policy Recommendations
title_fullStr A Critical Review of Demand Response Products as Resource for Ancillary Services: International Experience and Policy Recommendations
title_full_unstemmed A Critical Review of Demand Response Products as Resource for Ancillary Services: International Experience and Policy Recommendations
title_short A Critical Review of Demand Response Products as Resource for Ancillary Services: International Experience and Policy Recommendations
title_sort critical review of demand response products as resource for ancillary services international experience and policy recommendations
topic demand response
ancillary services
ENTSO-E
FERC
standardization
restoration reserves
url https://www.mdpi.com/1996-1073/14/4/846
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