The Interests Of The Electricity Demand Response, Planning And Implementation Of Research

Most electricity customers see electricity rates that are based on average electricity costs and bear little relation to the true production costs of electricity as they vary over time. Demand response is a tariff or program established to motivate changes in electric use by end-use customers in response to changes in the price of electricity over time, or to give incentive payments designed to induce lower electricity use at times of high market prices or when grid reliability is jeopardized.Price-based demand response gives customers time-varying rates that reflect the value and cost of electricity in different time periods. Armed with this information, customers tend to use less electricity at times when electricity prices are high.Incentive-based demand response programs pay participating customers to reduce their loads at times requested by the program sponsor, triggered either by a grid reliability problem or high electricity prices.Base on the observation of performance of time-varying rates, the paper found that residents would make a typical response to price-based demand for time-varying rates. According to monitoring results of 10,000 resident samples, the valley coefficient increased from 0.2794 to 0.3965, an increase of 11.71 percentage points. Peak-valley ratio was reduced from 85:15 to 57:43. At the same time, it shows that time-varying rates affect the demand side response directly, especially for industrial customers, which are crucial factor.Zhejiang Province implemented the two sessions - two tariff rates in January 2000, but the rates gap of peak-valley too small to get any better performance. After July 2003 the rates policy had been adjusted for the six sessions -three tariff rates, which help load shift from peak time to valley time. The Incentive-based demand responses are relatively limited to specific industry that may make the region's peak load curve inversion for a high load at valley time. So it is necessary to incentive more consumption at non-valley time and commitment to an orderly task through money compensation, tariff rates discount etc. In addition, in the seasonal tension times, offering business customers incentive-based policy for encouraging them use owned generation in peak periods.The most important benefit of demand response is improved resource-efficiency of electricity production due to closer alignment between customers' electricity prices and the value they place on electricity. This increased efficiency creates a variety of benefits, which fall into four groups: (1)Participant financial benefits are the bill savings and incentive payments earned by customers that adjust their electricity demand in response to time-varying electricity rates or incentive-based programs.(2) Market-wide financial benefits are the lower wholesale market prices that result because demand response averts the need to use the most costly-to-run power plants during periods of otherwise high demand, driving production costs and prices down for all wholesale electricity purchasers. Over the longer term, sustained demand response lowers aggregate system capacity requirements, allowing load-serving entities ( utilities and other retail suppliers ) to purchase or build less new capacity. Eventually these savings may be passed onto most retail customers as bill savings. (3) Reliability benefits are the operational security and adequacy savings that result because demand response lowers the likelihood and consequences of forced outages that impose financial costs and inconvenience on customers. (4)Market performance benefits refer to demand response's value in mitigating suppliers' ability to exercise market power by raising power prices significantly above production costs.The paper reviewed recent studies that have quantified demand response benefits and assessed the analytical methods used and analyzed ten studies that estimated the benefits of actual or proposed demand response initiatives for specific regions. The results point out important inconsistencies in how demand response is currently measured. To date there is little consistency in demand response quantification. Three types of studies have looked at demand response benefits; the time horizons and categories of benefits examined vary widely. Illustrative analyses, integrated resource planning studies, and Program performance.Based on this review, the estimated benefits of demand response are driven primarily by the quantification method, assumptions regarding customer participation and responsiveness, and market characteristics. Without accepted analytical methods, the paper also finds that it is not possible to quantify the benefits of demand response. Moreover, regional differences in market design, operation, and resource balance are important and must be taken into account. Estimates of demand response benefits are best done for service territories, states, and regions, because the magnitude of potential benefits is tied directly to local electric system conditions.The recommendations to encourage demand response nation-wide, which are organized as follows: (1) Fostering Price-Based Demand Response. (2) Improving Incentive-Based Demand Response. (3) Strengthening Demand Response Analysis and Valuation. (4) Integrating Demand Response into Resource Planning. (5) Adopting Enabling Technologies. (6) Enhancing Demand Response Actions.