Demand Response in the Ontario Electricity Market

Title: Demand Response in the Ontario Electricity Market
Authors: Gresch, Darren
Date: 2016-10-14
Abstract: In order to address the issue of climate change, our energy systems need to incorporate higher percentages of renewable energy generation. There are, however, unique challenges associated with this task. Although the marginal cost of renewable energy sources is at or near zero, renewables introduce a level of variability into the supply of electricity that is forcing electricity system operators to become more sophisticated in how they operate the electricity system. By more actively managing the demand for electricity through what is called demand response, some of the increased variability in the electricity supply due to higher percentages of renewables might be effectively mitigated by decreasing the variability in the demand for electricity. While various forms of demand response have existed for decades, technological improvements are increasing the usefulness and amount of demand response available to grid operators. This paper models Ontario’s electricity market for the year of 2014 and examines the effect of demand response at various levels of wind penetration in the electricity supply mix. The inclusion of demand response into the model introduces cost savings over the case with no demand response. Demand response decreases the need for conventional peaking sources and reduces the amount of excess electricity generation, making it easier for grid operators to incorporate a higher penetration of renewable energy sources.
CollectionAffaires publiques et internationales - Mémoires // Public and International Affairs - Research Papers
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