Demand response: Social welfare maximisation in an unbundled energy market - Case study for the low-voltage networks of a distribution network operator in the Netherlands

M. Nijhuis, M. Babar, M. Gibescu, J.F.G. Cobben

Research output: Contribution to journalArticleAcademicpeer-review

22 Citations (Scopus)
8 Downloads (Pure)

Abstract

With the introduction of smart meters, dynamic pricing and home energy management systems, residential customers are able to react to changes in electricity prices. In an unbundled market, the energy supplier and the network operator may have conflicting interests with respect to demand response (DR) programs. As customer participation is essential to a well-functioning DR program, it is needed to assess which DR programs offers most customer benefits. Two DR program options are analysed for low-voltage feeders: a program from the energy supplier based on the electricity price, and a DR program from the network operator based on the loading of the network. Depending on the network topology the benefits can change significantly between the two DR programs. DR from an energy supplier point of view might induce under-voltages which lead to additional network reinforcements, while load shifting from a network point of view can generate higher electricity cost.

Original languageEnglish
Article number7565746
Pages (from-to)32-38
Number of pages7
JournalIEEE Transactions on Industry Applications
Volume53
Issue number1
DOIs
Publication statusPublished - 2017

Keywords

  • Demand response (DR)
  • demand side management
  • distribution networks
  • energy management
  • load management
  • peak shaving
  • power system operation
  • smart grids

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