Study on Demand Response Markets and Programs in Electricity Markets

Abstract

The effective way to implement demand response is the demand response markets and demand response programs, and the drive is demand response benefits. Design principles of demand response markets and main components of demand response programs are put forward. Types of demand response markets and demand response programs are divided, and timescales of them are explored, the essence of demand response is expounded and the actions of demand response in improving grid reliability, lowering grid cost, increasing market efficiency, enhancing the ability of risk management, improving environmental quality, elevating service level and relieving market power are analyzed. The conditions of implementing demand response in PJM market are described in detail. Some suggestions and assumptions for the construction of demand response markets and demand response programs in China are proposed.