Exploratory Analysis of Direct Load Control Policies for Heat Pumps in the Future Swiss Electricity System

New flexible electrical loads such as heat pumps present major demand-side flexibility opportunities thanks to their load shifting potential. In this study, we analyze to what extent the direct load control (DLC) of heat pumps within realistic bounds facilitates their integration in the Swiss energy system as it decarbonizes, by coupling a bottom-up building stock model and a high-resolution electricity system model. We rely on recently offered DLC contracts by Swiss distribution system operators to set these bounds and study the impact of different DLC settings. We find that contract parameters such as allowing preheating and prolonging shifting windows significantly impact how much DLC is performed. However, even high levels of DLC lead to small impacts on the electricity system's cost and renewables' integration in Switzerland, possibly only having a significant effect on peak electricity prices.