Four potential business cases for demand side integration

In this study, we explore briefly four different business cases for smart power by means of simulations. For that reason three types of intelligent systems for household applications are modeled: electric devices with a storage capacity like boilers, shiftable loads like washing machines and batteries. A district of 300 houses is simulated. Agents, representing devices can trade power on virtual markets, like the PowerMatcher. First, the relation between load flows and smart power is examined. We found, as a rule of thumb, that the variations in load flow decreases proportionally to the fraction smart controlled power. This might have important consequences for investment policies in power networks. Next, the stability of a cluster is examined. Here it is estimated how long a cluster can remain stable if a constant power flux is imposed. This flexibility can be traded, directly on an imbalance market or through a balance responsible party (BRP). In the next two business cases, the implications for retailers and end-users are examined for three billing types: a fixed tariff, a two tariff structure and an hourly ldquoreal-timerdquo tariff structure. Compared to the fixed tariff structure, the incentive to use smart devices is small in the double tariff structure. In a real-time tariff structure the income increases and the risk decreases for the retailer, while end-users have the potential to decrease costs.