Demand response with shiftable volume in an equilibrium model of the power system

A linear complementarity model is extended with volume-shifting demand response. The model is an equilibrium model of the power market. In this paper the model is subjected to a scenario for the northern European power system represented by time series for demand and renewable generation. Investments and dispatch are being computed to study the effect of volume shifting demand response on system adequacy and the potential shift in generation mix. The results show that, within certain limits, the system may benefit from demand response. Further, a sensitivity analysis suggest that demand response may not be enough as the share of renewable energy sources increase. From a system adequacy point of view the results show that demand response can reduce the number of hours with load curtailment, but may increase the amount of energy not served with a cost minimization approach.