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Información del Working Paper

Demand participation in balancing services

T. Freire-Barceló, F. Martín, A. Sánchez


Balancing markets will become more and more relevant with the increase of volatility in the electricity system due to the renewable quota increase. New policies are paving the way for demand participation in reserve products. This paper assesses flexible demand participation in the reserves market to become less gas dependent exploiting the resources available in the system as much as possible. In particular, heating, cooling, hot water, and electric vehicles consumption categories are considered the sources of flexible demand. The main findings from this study are that demand, offers more potential benefits for the system in the energy market than in the balancing services. This is due to the decrease in firm capacity investment needs thanks to reducing systems peak reserves. Then, it also reduces spillages, getting the most of new renewable investments. Moreover, increasing the percentage of demand response (DR) available in the system is only reflected in the energy market. DR consideration when planning generation technologies investment can reduce up to 12% of the total system costs. Finally, among the three main consumption sectors that can provide flexible demand, DHW and EVs offer more flexibility than H&C demand due to comfort temperature constraints.

Resumen divulgativo:

Este documento evalúa el efecto de la participación de la respuesta a la demanda en los servicios de equilibrio. Desde la perspectiva del sistema, puede ahorrar hasta un 12% de los costes totales del sistema, aunque la mayor parte de este ahorro procede de su participación en el mercado mayorista.

Palabras clave: Demand response, Reserves, FRR, Optimization, Flexibility.

Fecha de Registro: 27/02/2023


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