Theory And Empirical Research On Electric Power Demand Response

Demand Response refers to the change of short term usage manner and long term usage pattern of electricity end users, upon the response to the stimulation and/or price signal based on the market and the direction from the system operator. According to the difference of response signal, the DR can be classified as stimulation based DR and pricing based DR. Based on the systematical analysis and summarization of the kinds of stimulation based DR programs and pricing based DR programs which being or have been implemented in OECD Countries, and also the programs being implemented in some typical organized power markets, This paper focused on the economical theories, the enabling technologies, the stabilization effect for the power market, the long term and short term economic benefits and the implemental obstacles of Demand Response, furthermore, it researched the suggested programs for ushering the DR into China with the emperical case study.The main innovative outcomes of this paper are as follow:(1) On the basis of the stability effort of Demand Response, the regulating capacity and the contract trade, the paper establishes the stability model for the power market, and derives two ctiteria of power market stability. Criterion 1:the more the limit of response function of generators being closed to 1, the better the static stability of the market is. And criterion 2, the demand elasticity faced by independent generators should be no less than the maximum market share got by the biggest generation company in the market.(2) This paper brings out a method to calculate short-term economic benefit of demand response based on micro economy principle. It also narrates the difference between rates diversion and cost reduction and net benefit increase and short-term tariff saving. A new idea and method is brought out to assess long term economic benefit by using value at risk.(3) This paper brings out the concepts of Demand Side Bidding of Balance Service and Real-time Pricing Consumer Group, and presents that China could introduce Demand Side Bidding of Balance Service before the power market being established, and could introduce Real-time Pricing Consumer Group with the establishment of power market simultaneously, so that to get the benefits of Demand Response in time.This paper is the first systematic study on power demand response in China.