Improvement of Economic Integration of Renewable Energy Resources through Incentive-Based Demand Response Programs

Reza Jalilzadeh Hamidi, Ailin Asadinejad

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

The integration of renewable generation presents a promising venue for displacing fossil fuels, yet integration remains a challenge. This paper investigates Demand Response (DR) as a means of economically integrating Renewable Energy Resources (RERs). We propose Incentive-Based DR (IBDR) programs, particularly suitable for small customers. The uncertainties in the electricity market price pose a challenge to IBDR programs, which is addressed in this paper through a novel and robust IBDR approach that considers both the electricity market price uncertainties and customer responses to incentives. In this paper, scenarios are simulated premised on the Western Electricity Coordinating Council (WECC) 240-bus system in which coal-fired power plants become inactivated, while the RER contribution increases in the span of one year. The simulation results indicate that the proposed IBDR program mitigates the issues associated with renewable expansion, such as utility benefit loss and market price volatility. In addition, the proposed IBDR effectively manages up to 30% of errors in day-ahead wind forecasts that significantly reduce financial risks linked to IBDR programs.

Original languageEnglish
Article number2545
JournalEnergies
Volume17
Issue number11
DOIs
StatePublished - Jun 2024

Scopus Subject Areas

  • Renewable Energy, Sustainability and the Environment
  • Fuel Technology
  • Engineering (miscellaneous)
  • Energy Engineering and Power Technology
  • Energy (miscellaneous)
  • Control and Optimization
  • Electrical and Electronic Engineering

Keywords

  • demand response
  • IBDR
  • incentive-based DR
  • market volatility
  • renewable generation
  • small electricity customers

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