Performance simulation of the Stabilization Fund of electric power in Uruguay with and without smart grid Controlled Responsive Demand

Uruguay has a high hydroelectric power generation, creating a strong dependency between electricity generation and water situation. In periods of low rainfall must resort to more expensive electricity generation, such as thermal generation or to the imported electricity generation, with the consequent negative impact on the economy. To mitigate the effects of water stress on public finances, the Energy Stabilization Fund (FEE for its acronym in Spanish) was created. The contributions and the use of FEE are triggered by the actual hydraulic generation of electricity system compared with the expected hydro generation (quarterly and/or annual). In this paper we analyze and compare the performance of the FEE with or without smart grid controlled responsive demand. We conclude that the implementation of an aggressive participation of Controlled Responsive Demand has not impact on the requirements of the FEE.