Which Electricity Market Design to Encourage the Development of Demand Response?

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dc.contributor.author RIOUS, Vincent
dc.contributor.author ROQUES, Fabien A.
dc.contributor.author PEREZ, Yannick
dc.date.accessioned 2012-02-24T17:01:08Z
dc.date.available 2012-02-24T17:01:08Z
dc.date.issued 2012
dc.identifier.issn 1028-3625
dc.identifier.uri http://hdl.handle.net/1814/20622
dc.description.abstract Demand response is a cornerstone problem in electricity markets under climate change constraint. Most liberalized electricity markets have a poor track record at encouraging the deployment of smart meters and the development of demand response. In Europe, different models are considered for demand response, from a development under a regulated regime to a development under competitive perspectives. In this paper, focusing on demand response and smart metering for mid-size and small consumers, we investigate which types of market signals should be sent to demand manager to see demand response emerge as a competitive activity. Using data from the French power system over the last 8 years, we compare the possible market design options to allow demand response to develop. Our simulations demonstrate that with the current market rules, demand response is not a profitable activity in the French electricity industry. Introducing a reserve and/or capacity remuneration could bring additional revenues to demand response providers and improve incentives to put in place demand response programs in a market environment. en
dc.format.mimetype application/pdf
dc.language.iso en en
dc.relation.ispartofseries EUI RSCAS en
dc.relation.ispartofseries 2012/12 en
dc.relation.ispartofseries Loyola de Palacio Programme on Energy Policy en
dc.rights info:eu-repo/semantics/openAccess
dc.subject Market Design en
dc.subject Demand Response en
dc.subject Capacity Market en
dc.title Which Electricity Market Design to Encourage the Development of Demand Response? en
dc.type Working Paper en
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