How can demand response be used to support renewable energy?

Demand response is turning into a vital aspect of modern power system considering the paradigm shift (central to distributed system) and the proliferation of smart, controllable and active elements such as batteries, EV and smart appliances. The fact that non-generators can use DR as a business model to exchange their flexibility for financial merits is making it attractive.

Demand response empowers customers to adjust their electricity use based on price signals or incentives, contributing to a more flexible and resilient grid. From shifting appliance use to leveraging smart technology, these programs offer cost savings, environmental benefits, and increased grid stability. As renewable energy grows, demand response will play a critical role in balancing the grid and unlocking a sustainable future.

DR facilitate balancing Generation & Load for high penetration of RES. In addition it allows for more RES to be connected mitigating RES curtailments in period of High RES. Finally it can be used for congestion management following an imposed power from weather condition based technologies, i.e. Solar and Wind. It requires only Load Demand control to be implemented. DR flexibility allows to minimise Grid investments. Ultimate, DR it is a win-win strategies for smart grid deployment and allows to achieve more with less, more RES with less Grid investments facilitating the achievement of a sustainable, cost effective, and efficient electric energy system.

Demand response success is highly dependent upon the availability of smart connected devices. A robust Internet infrastructure with smart connected devices is a pre-requisite for such demand response programs to be effective. At regulatory level, it is necessary that such rules are enforced that ensures demand response capability is incorporated in the appliances by the manufacturers of appliances.

Demand response allows for better grid balancing by adjusting electricity consumption in response to fluctuations in renewable energy generation. Consumers can shift their electricity usage to times when renewable energy production is high, helping to match supply with demand.

Deploying demand response (DR) is a strategic way to bolster renewable energy integration. By aligning energy consumption with renewable generation peaks, DR enhances grid reliability. Time-sensitive pricing and incentives encourage consumers to shift usage to periods of abundant renewable supply, optimizing resource utilization. Smart grid technologies enable real-time communication, empowering consumers to make informed, energy-efficient choices. Moreover, DR mitigates the intermittency challenge of renewables, enhancing grid stability. Collaborative efforts between utilities, policymakers, and businesses can amplify the impact of DR programs, creating a dynamic energy ecosystem that maximizes the potential of renewable sources.

As we transition to renewable forms of generation, the real benefit of demand response is that it enables greater penetration of variable renewable energy. It does this by signaling when variable renewables have high output and encouraging use or by signaling when generation is constrained and encouraging demand reduction. Demand response therefore enables the quicker phase out of baseload fossil fuels by using modern technology and market signals to match supply and demand.

I think the key words here are “choice”, “control”, and “participation”. DR is a great way to have more of each. After all, isn’t having an energy management strategy about being proactive about how and when we’re using it?

Demand side management (DSM) is a powerful tool which involves managing customer-side usage either by reducing their requirement overall or by scheduling high power requirements to a later time when the peak demand has subsided. There are several strategies in DSM such as peak clipping, valley filling, load shifting, etc., all of which deserve more spotlight than this. Reducing demand can be considered equivalent to capacity addition on the supply side. Better plant load management would result in better ROA for companies and a lower risk from an equipment safety point of view.

You can think of demand response as the flip side of dispatchable power generation. It's in essence, dispatchable power consumption. Used effectively, it helps balance the grid and smooth demand.

One of the challenges with designing a successful demand response program is ensuring sufficient customer participation. Most demand response programs offer participants the right to opt out of a specific demand reduction event. Well designed demand response programs must ensure the incentive to opt in to a demand response event is great enough to achieve the desired impact to the electric grid. Some DR programs achieve this by enrolling a sufficient number of customers to allow for shorter load reduction periods or by using load “shimmying” techniques that limit the impact to any one customer or targeted energy load.

On an industrial scale, one of the challenges is to identify loads that can be managed without affecting production and to automate their control to allow seamless and timely response to load signals.

Even though I largely agree with Yves Ceustermans comment field trials in the past have shown that consumers don't care about all these wonderful data and devices. Therfore, I believe we need to spend more time and effort to completely automate all the processes for the benefit of the consumer and the transition in the energy industry.

The two biggest challenges with demand response are the labor burden and safety/comfort considerations. A great many DR programs require site teams to physically implement the measures at the moment they're called. This is a huge problem in our already understaffed building operator environment. DR has to be fully automated and thoroughly tested to ensure minimal impact on those tasked with keeping the energy consuming systems running. There are large safety and comfort implications from demand response. I've seen DR measures for disabling bathroom fans and even shutting ventilation dampers. These kinds of things may save energy, but the comfort and safety implications are too big to ignore.

One of the perceived challenges of demand response is that it will cost customers money by putting up prices when demand is high and generation is low. While this may be true at a specific moment in time, demand response should enable overall system costs to come down by facilitating greater integration of the cheapest form of energy production (renewable energy).

DR resource being on the edge of the grid can tremendously help in enhancing renewable energy integration capacity and efficiency. This is due to - frequency stabilization capability - voltage stabilization capability

Renewable energy integrated with battery storage forms a strong combination for handling peak load demands with added value of voltage or frequency regulation services. Thanks to advanced Power conversion technologies available today which is allowing for fast or super fast response from renewables for any demand fluctuations in the networks. Classic example would Australia's energy market which is able to achieve more than 60% renewable energy in the overall mix on any average day with fluctuating demand. Also with more accurate weather predictions and generation forecasting capabilities with AI powered tools, the demand response in any energy market will be dominated by renewables.

Demand response can also reduce the need for curtailment of VRE, which is the situation where VRE output is reduced or wasted due to grid constraints or inflexible generation. Curtailment can increase the system costs and lower the value of VRE.

As an energy management engineer, I see demand response as a theoretically effective tool for solar energy integration, yet it's limited by high upgrade costs and independently controlled infrastructure. Many users have non-dispatchable demand, unable to adjust consumption quickly. However, combining battery storage with renewables like wind and solar offers a solution. Battery storage is dispatchable, countering renewables' non-dispatchability and enhancing demand response effectiveness. This integration is key in advancing microgrid control, crucial for future demand management and efficient energy distribution.

DR can support renewable energy in several ways: (i) It provides a mechanism to manage fluctuations and adapt demand to periods of high renewable energy generation. (ii) It helps to balance the intermittent nature of renewable energy sources by matching electricity demand to fluctuating supply from sources such as solar and wind. (iii) When demand peaks, demand reduction allows for a reduction in overall energy consumption instead of relying on fossil fuel back-up power plants, thus supporting a cleaner energy mix. (iv) consumers are encouraged to use electricity when renewable energy production is high, promoting a more sustainable and efficient use of available resources.

One of the up-and-coming solutions that will scale DR is the grid-interactive efficient buildings technology. The vision of a smart, two-way grid interacting with intelligent, responsive buildings can deliver new opportunities to save costs for building owners, operators, utilities and operators. As responsive assets, buildings can ramp energy use up or down depending on the cost or carbon intensity of the utility generation source. This helps utilities ensure the balanced, flexible supply and demand of high levels of renewables and decarbonize the electricity system, resulting in resilient cities, communities, and regions.

One of the best ways to fully integrate demand response to other solutions is by adopting a company-wide demand flexibility strategy. DR is just one of many tools available to a demand flexibility professional. By adopting a demand flexibility strategy, which pairs traditional DR with VPPs, renewables, DERMS, and EVs, you can holistically manage power output and consumption. Companies like Autogrid (now uplight) and PSE are doing fantastic work in this area. It increases grid resilience, saves electrons, and maximizes efficiency outputs.

Demand response is a useful tool to shave peak load periods till more renewable energy is available. Often during high peak hot days there is little wind available. By reducing the peak it buys you time till the load reduces.

No futuro, a resposta à demanda será uma solu??o de big data oferecida pelas big techs. O conhecimento simultaneo dos dados de demanda e de gera??o renovável permitirá sincromizar oferta e demanda. Com isso, pode-se, por exemplo, reduzir o curtailment e melhorar o desempenho energético e comercial das fontes renováveis.

Demand Response and Energy Curtailment programs were developed recognizing that during peak loads, a load that can follow dispatch signals and reduce/curtail what they withdraw from the grid are as valuable as energy suppliers or generators who increase injection into the grid in response to dispatch signals in realtime.

Energy storage systems are true game-changers, especially in demand response strategies. The ability to store excess energy during low-demand periods and release it during peak times enhances grid reliability and efficiency. It not only supports the grid but empowers businesses to participate actively in demand response programs, optimizing costs and reducing reliance on peak-demand pricing. A win-win for sustainability and economic resilience.

Me parece interesantísimo el almacenamiento térmico para hacer frente a la respuesta de la demanda. Por ejemplo calentar agua para ACS o producir hielo para cámaras frigoríficas durante las horas de baja demanda sería beneficioso para el cliente y para la flexibilidad de la demanda. Son tecnologías que ya existen parcialmente, conozco sistemas que producen hielo en P6 para cámaras frigoríficas o bombas de calor que producen ACS con excedentes de fotovoltaica. Es un paso más, casar estos productores con la curva de demanda para que produzca en los momentos más favorables.

We need to make clear that demand response is about energy efficiency (toward the grid), and not energy saving. We might even be increasing overall kWh consumption to a small extent - but if the energy is green now (versus brown or gray before), that should not matter!

Traditional demand response scares me. If there is load to shed, and it doesn't negatively impact the building performance or its occupants, it shouldn't be a temporary measure. It means that the energy saved during demand response should never be used in the first place. if something is working super well as a temporary cost avoidance, consider making it permanent. This will reduce your incentive in the next season but is ultimately the right choice. The wise Chris Jackson once told me, "you should be operating your building such that there's no demand to give back," and per usual, he's right.

Demand response can be implemented through various mechanisms, such as price-based programmes, incentive-based programmes, or automated demand response. These mechanisms can involve different types of customers, such as residential, commercial, or industrial, and different types of loads, such as lighting, heating, cooling, or electric vehicles.