Aggregated effect of demand response on performance of future grid scenarios

The existing future grid (FG) feasibility studies have mostly considered simple balancing, but largely neglected network related issues and the effect of demand response (DR) for modelling nett future demand. This paper studies the effect of DR on performance of the Australian National Electricity Market in 2020 with the increased penetration of renewable energy sources (RESs). The demand model integrates the aggregated effect of DR in a simplified representation of the effect of market/dispatch processes aiming at minimising the overall cost of supplying electrical energy. The conventional demand model in the optimisation formulation is augmented by including the aggregated effect of numerous price anticipating users equipped with rooftop photovoltaic (PV)-storage systems. Simulation results show that increasing penetration of DR improves loadability and damping of the system with the increased penetration of RESs.