A methodology for estimating the capacity value of demand response

An understanding of the capacity value of demand response, which represents the contribution it could make to power system adequacy, could provide an indication of its potential economic value and allow for comparison with other resources. This paper presents a preliminary methodology for estimating the capacity value of demand response utilizing demand response availability profiles and applying a response duration constraint. The results highlight the sensitivity of the capacity value of demand response to the energy limitation of the resource, the need to target different load types in different systems and the relatively small size of the demand response resources examined in relation to overall system size.