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ON THE FLEXIBILITY OF ELECTRICTY CONSUMERS: Modelling, Quantification and Analysis of Notice Time
Kungliga Tekniska Högskolan (KTH), Sweden.ORCID iD: 0000-0003-0685-0199
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation.ORCID iD: 0000-0002-5784-877X
Kungliga Tekniska Högskolan (KTH), Sweden.ORCID iD: 0000-0002-8189-2420
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation.ORCID iD: 0000-0002-1545-3956
2016 (English)Conference paper, Oral presentation with published abstract (Refereed)
Abstract [en]

Power systems with a large share of inherently intermittent renewable energy sources require new approaches to system operation. Demand response is seen as a potential possibility for contributing to maintaining power balance in a future energy system with large amounts of volatile renewable energy generation (Bartusch et al., 2011; Torriti, Hassan & Leach, 2010). It would be a measure to reduce costs for maintaining the power balance, which is believed to become more expensive if traditional measures is to handle the increasing intermittency (Albadi & El-Saadany, 2008; Kirschen, 2003; Siano, 2014). The study of the flexibility of electricity demand is an essential key to exploring the current and future potential of demand side response for power system services.  

For both solar and wind power, forecasts for several hours ahead may have a lower accuracy. Statistically, the forecasts become better the closer they approach real operation. In practice however, this does not happen in each case. This means that the flexibility need for a certain hour will be different, depending on when the need is identified, i.e. different notice times.

For consumers to be flexible, there are several parameters that impact their ability and willingness to react to incentives with a change of load. Elasticity (self- and cross-elasticity) has been defined in literature to describe consumer flexibility with respect to a change of electricity price and is often referred to when modelling the flexibility of consumers (Albadi & El-Saadany, 2008; Lijesen, 2007). Flexibility with respect to electricity prices or other financial incentives has been widely studied in literature on smart grids and demand response.

Another important parameter for electric demand to be flexible is the notice time, i.e. the time span between informing the consumer about a future need for reorganizing their consumption and providing a change of consumption as a system service. The impact of notice time on the flexibility of electricity consumers has not yet been systematically researched. It is logical that the willingness and ability of certain consumers to provide flexibility decreases as notice time becomes shorter. There are, however, some loads that even may become more flexible, the shorter the notice time, such as e.g. the charging of electric vehicles.  

An essential basis for flexible consumers is the communication infrastructure that is used for sending price signals, bids and further market parameters depending on the demand response program. The type and information content of such communication is enabled through technological devices. These smart devices – which in most cases must exceed the function of only smart metering (Siano, 2014) – can have different properties and requirements that are determined by the demand response program and its respective requirements on data exchange. Therefore, the technological implementation and the impact of the limitations originating from the same are discussed in this study as well.  

For a quantitative analysis of customer flexibility, both price and notice time are imperative parameters. Former has been studied in numerous references (Bartusch et al., 2011; Gyamfi, Krumdieck & Urmee, 2013; Kirschen et al., 2000; Lijesen, 2007) whereas the impact of the latter has not yet been examined in depth. In this paper, a study on consumer flexibility with respect to notice time is presented. It is analyzed how the ability to reschedule electricity demand during a time interval in the future is impacted by terms of notifying and updating flexible consumers. For this, a market and demand response program optimizing social welfare is developed that allows for an analysis of notice time dependent consumers.

Place, publisher, year, edition, pages
2016.
Keywords [en]
communication infrastructure, demand response program, electricity consumption, flexibility, notice time, power system services, price elasticity, renewable energy, wind power forecast
National Category
Economics Energy Systems
Identifiers
URN: urn:nbn:se:mdh:diva-34963OAI: oai:DiVA.org:mdh-34963DiVA, id: diva2:1077548
Conference
Swedish Association for Energy Economics (SAEE) Conference 2016, Luleå, August 23-24, 2016
Projects
Flexibla elkunders roll i ett framtida förnybart kraftsystem
Funder
Swedish Energy Agency, P39736-1Available from: 2017-02-28 Created: 2017-02-28 Last updated: 2017-02-28Bibliographically approved

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Kovala, TommyPapahristodoulou, Christos

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