Realizing Combined Value Streams from Utility-Operated Demand Response Resources

Due to recent decarbonization, decentralization and digitalization trends sweeping across the power industry, the value of customer-side resources for providing different grid-support services is increasing. As such, load serving entities that provide electricity to final consumers and have access to demand response (DR) resources can utilize such resources for multiple services. This paper discusses a day-ahead scheduling model used to investigate the potential benefits of using aggregated residential heating, ventilation and air conditioning (HVAC) units and aggregated residential electric water heaters (WH) for both peak shaving and market-based frequency regulation. The proposed model captures the perspective of a load serving entity (LSE) who participates in a wholesale market environment and also operates demand side management programs. To assess the performance of the model and potential benefits from combining different value streams, various scenarios based on real load consumption data from Pecan Street and wholesale market data from the NYISO market are adopted for illustration.