Review of demand side management modelling for application to renewables integration in Australian power markets

Demand side management (DSM) has considerable potential to reduce power system generation, transmission and distribution costs. However, the integration of DSM into existing restructured electricity markets is not straightforward. Here, major areas of research into DSM will be reviewed, and the elements of most interest identified, particularly in the context of the Australian National Electricity Market (NEM). This paper focuses on research that uses software modelling tools to examine DSM in large power systems. Demand response (DR) in particular is of broad interest for power systems operation and planning. This is partly due to the potential of DR to facilitate the integration of variable renewable energy sources, and also due to the potential complexities that large quantities of responsive demand may introduce into power markets such as the NEM. This paper will review the suitability of approaches to modelling DSM for renewables integration in the NEM.