A framework for and assessment of demand response and energy storage in power systems

The shift in the electricity industry from regulated monopolies to competitive markets as well as the widespread introduction of fluctuating renewable energy sources bring new challenges to power systems. Some of these challenges can be mitigated by using demand response (DR) and energy storage to provide power system services. The aim of this paper is to provide a unified framework that allows us to assess different types of DR and energy storage resources and determine which resources are best suited to which services. We focus on four resources: batteries, plug-in electric vehicles, commercial buildings, and thermostatically controlled loads. We define generic power system services in order to assess the resources. The contribution of the paper is threefold: (i) the development of a framework for assessing DR and energy storage resources; (ii) a detailed analysis of the four resources in terms of ability for providing power system services, and (iii) a comparison of the resources, including an example case for Switzerland. We find that the ability of resources to provide power system services varies largely and also depends on the implementation scenario. Generally, there is large potential to use DR and energy storage for providing power system services, but there are also challenges to be addressed, for example, adequate compensation, privacy, guaranteeing costumer service, etc.