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DEMAND RESPONSE: technology requirements for an emerging business

pubblicazioni - Articolo

DEMAND RESPONSE: technology requirements for an emerging business

Emerging electricity markets demand for new metering, control, and information management technologies to enable flexible consumption patterns.

This is instrumental to a more responsible demand behavior and demand participation in energy market, that allows also to deal with system security and congestions control. Technologies such as building automation, near real time meter reading, and access to real time pricing data can create better energy consumers, who correlate energy consumption with energy costs. By doing this, consumers are able to assess whether it is best to reduce consumption or continue using power as they normally would. Automated systems can be used by the Demand Response (DR) Service Providers to alert their customers to cost saving or revenue earning opportunities. System Operators have similar needs as the DR Service Providers, with the additional need to surgically request DR operations in a specific zone in order to deal with transmission congestion. In order for a DR product to be successful, it must have ways to trigger DR opportunities, measure the consumer performance, and properly settle the event (potentially with both the consumer and the wholesale marketplace). From these needs, it can be inferred that a set of basic functionalities will need to be incorporated into a DR technology product. The paper presents the Demand Response basic concepts, outlines benefits and business models, and introduces the technology functionalities required by the different market participants.

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