The Influence of Demand Resource Response Time in Balancing Wind and Load

The integration of demand response resources into wholesale electricity markets facilitates the growth in wind power integration. Available demand resources have different capabilities in terms of response time, as demonstrated by the variety of programs ranging from day-ahead markets to dynamic pricing. This paper analyzes the importance of selecting the most appropriate demand response resources, DRR, for balancing wind variability at different time scales. The paper first considers the power spectral density of wind power and electric load for IS One region, and identifies benefits in using demand response programs to mitigate wind variability. This comparison provides insight into the time scales most valuable for balancing wind variability. Next, the paper presents empirical tests using OPF and Monte Carlo simulations to analyze the use of DRR for mitigating wind uncertainty. Results show that an optimal combination of hour ahead and 10-minute DRR eliminates price spikes at low and moderate wind penetrations while significantly reducing price spike events at 30% wind penetration.