Optimized Network Utilities and Demand Response

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In the first paper in this series, we looked at how demand response (DR) developed and how it offers great possibilities in the future by creating flexible ways to help balance the grid—both by decreasing and increasing loads in response to generation fluctuations. The type of benefits that demand response can provide includes:

  • Bill savings earned by customers that adjust their electricity demand in response to signals
  • Market-wide financial benefits driving production costs and prices down and lowering aggregate system capacity requirements
  • Reliability benefits resulting from demand response lowering the likelihood and consequences of forced outages
  • Increased levels of renewables through coordination of supply side and demand side resources
  • Market performance benefits by mitigating suppliers’ ability to exercise market power
  • Enhanced customer satisfaction through participation