The document discusses customer demand response mechanisms for electricity, focusing on how end-users can adjust their energy consumption based on price signals. It outlines two main types of demand studies: total demand and changes in demand, highlighting the importance of creating demand packages and analyzing customer flexibility. The conclusions emphasize the need for research into demand response resources, recommending that operators facilitate consumer participation in energy markets to manage costs and reduce price volatility.

1. CUSTOMER ORGANIZATIONCUSTOMER ORGANIZATION
Prof. Dr. Carlos Álvarez
Instituto de Ingeniería Energética
Universidad Politécnica de Valencia
ELECTRIC DEMAND SIDE OPERATION
DSO MADRID FORUM
RED ELÉCTRICA DE ESPAÑA
Madrid, October 19, 2005

2. CONTENTSCONTENTS
1.1. INTRODUCTIONINTRODUCTION
2.2. PROCESS SUITABILITYPROCESS SUITABILITY
3.3. DEMAND ORGANIZATIONDEMAND ORGANIZATION
4.4. CONCLUSIONSCONCLUSIONS

3. CUSTOMERSCUSTOMERS
DEMAND RESPONSE WILL COME OUT FROM THE FLEXIBILITYDEMAND RESPONSE WILL COME OUT FROM THE FLEXIBILITY
ASSOCIATED TO THE END USER PROCESSES THE CAPABILITYASSOCIATED TO THE END USER PROCESSES THE CAPABILITY
OF THE CUSTOMER TO ASSIGN ENERGY USES TO PRICESOF THE CUSTOMER TO ASSIGN ENERGY USES TO PRICES
THIS PROCESSES AS WELL AS THE EQUIPMENT TO SUPPLY THETHIS PROCESSES AS WELL AS THE EQUIPMENT TO SUPPLY THE
REQUIRED SERVICE LEVELS HAS TO BE INVESTIGATED IN ORDER TOREQUIRED SERVICE LEVELS HAS TO BE INVESTIGATED IN ORDER TO
DETERMINE THE AVAILABLE DEMAND RESOURCESDETERMINE THE AVAILABLE DEMAND RESOURCES
DEMAND RESPONSE CAN COME FROM CUSTOMER BY TWODEMAND RESPONSE CAN COME FROM CUSTOMER BY TWO
MECHANISMS:MECHANISMS:
•• IDENTIFICATION OFIDENTIFICATION OF ENERGY REQUIREMENTSENERGY REQUIREMENTS AND ITSAND ITS
ASSOCIATEDASSOCIATED BENEFITSBENEFITS (BIDS)(BIDS)
•• IDENTIFICATION OF THE OPPORTUNITIES TOIDENTIFICATION OF THE OPPORTUNITIES TO GIVE UP ORGIVE UP OR
DELAY OF SOME ENERGY CONSUMPTIONDELAY OF SOME ENERGY CONSUMPTION AND ITSAND ITS
ASSOCIATED COST (OFFERS).ASSOCIATED COST (OFFERS).
OPPORTUNITY TO MAKE PROFITS FROM THE CUSTOMEROPPORTUNITY TO MAKE PROFITS FROM THE CUSTOMER
FLEXIBILITYFLEXIBILITY

4. CUSTOMER RESPONSE IN DR PROGRAMS
– TWO TYPES OF DEMAND STUDIES:
– TOTAL DEMAND OF A CUSTOMER:
» BILATERAL CONTRACT
» ELECTRICITY MARKETS
– CHANGE IN THE DEMAND
– CUSTOMER TASK: TO ARRANGE ITS DEMAND INTO DEMAND
PACKAGES TO BE OFFERED OR BID
MWh
1 24
Changes in the
Customer demand
Customer buys energy
At low prices
Day-ahead demand
(global demand)
Time (h)
↓
CUSTOMERSCUSTOMERS

5. • PARAMETERS OF A DEMAND PACKAGE (DP):
– TRIGGER PRICE: F (CUSTOMER, END USE)
– SIZE AND SHAPE OF THE DP BLOCK: (CUSTOMER, LOAD)
– THE NOTICE REQUIRED FOR THE CHANGE IN THE DEMAND
– ADDITIONAL LIMITATIONS: NUMBER OF PARTICIPATIONS IN A DAY, MONTH OR
YEAR
■ Storage capability
■ Non storage loads
Residential
■ Storage capability
■ Non storage loads
Commercial
■ Process independent
■ Sequential
■ Process interlocked
■ Storage capability
Industrial
Controllable loads
Capability to reduce demand
Type of customer
CUSTOMERSCUSTOMERS

6. METHODOLOGY FOR DP CREATIONMETHODOLOGY FOR DP CREATION::
COMPREHENSIVE ANALYSIS OF THE CUSTOMER ENDCOMPREHENSIVE ANALYSIS OF THE CUSTOMER END--USES ANDUSES AND
PROCESSESPROCESSES
•• SEVERAL FACTORS ARE RELEVANT TO ASSES LOAD FLEXIBILITYSEVERAL FACTORS ARE RELEVANT TO ASSES LOAD FLEXIBILITY
A.A. FINAL SERVICE SUPPLIED BY THE ELECTRIC LOADFINAL SERVICE SUPPLIED BY THE ELECTRIC LOAD
•• HEAT, COOL, ILLUMINATION, PRODUCTIONHEAT, COOL, ILLUMINATION, PRODUCTION
•• DUAL FUEL SYSTEMSDUAL FUEL SYSTEMS
B.B. STORAGE CAPACITY:STORAGE CAPACITY: PARTIAL, TOTALPARTIAL, TOTAL
ELECTRICITYELECTRICITY
THERMAL ENERGYTHERMAL ENERGY
PRODUCTPRODUCT
HYDROGEN, ETCHYDROGEN, ETC
C.C. RATE OF LOAD SWITCHING:RATE OF LOAD SWITCHING: NATURAL ON/OFF LOAD SWITCHINGNATURAL ON/OFF LOAD SWITCHING
D.D. LOAD DISPATCH AVAILABILITYLOAD DISPATCH AVAILABILITY
CUSTOMERSCUSTOMERS

7. EXAMPLE OF CUSTOMER LOAD ORGANIZATION
– End uses identification:
• By analyzing the total load curves in different periods
• By non intrusive load monitoring (electronic, HAVC and lighting loads)
• By laboratory experiences: offices and classrooms
Globalpowerdemand(kW)
CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE

8. CLASSIFICATION OF COMMERCIAL AND RESIDENTIAL LOADS
ACCORDING TO THEIR SUITABILITY FOR A FLEXIBLE CONTROL
• H: High; M: medium; L: low
HoursMMHFreezers
Min.MMLFridges
HoursMHHWater Heater
HoursLMHIrrigation and
swimming pumps
Hours
Hours
Hours
H
M
M
H
M
H
M
H
H
HVAC:
■ Direct
■ Partial storage
■ Full storage
HoursHMHDimmable lighting
Bid
duration
DP
(real time)
DP
(short term)
DP
(medium term)
Load
CUSTOMERSCUSTOMERS

9. CUSTOMER LOAD ANALYSIS :WINTER PEAK
Not considered4MWDistributed Gen.
Emergency lighting,
freezers chambers, etc.
10%Other demands
No response available10%?Teaching and Labs
equipments
No response available15%Electronic loads
300kW external
150kW dimmable
28%Lighting
Individual AC, split units
and compact 3p units
2%Air conditioning
HP + Conventional
electric heaters (5%)
35%Space heating
ConsiderationsDemandEnd use
CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE

10. 3Other loadsL4
1Internal LightingL3b
3Internal LightingL3a
3External LightingL2
0.5Space conditioningL1
Price (€/kWh)DescriptionDemand Package
COST OF THE ENERGY BOUGHT IN DAILY MARKET: 7,075 €/DAY

11. DEMAND AND ENERGY PRICES
0
1000
2000
3000
4000
5000
6000
7000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Hora
KW
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
cent€/KWh
L4
L3b
L3a
L2
L1
PMI
PMD

12. GENERATION OF DEMAND BIDS
• UPV BIDS FOR THE DAY-AHEAD ENERGY MARKET
– WINTER PEAK (JANUARY 29, 2002. BID FROM 12 TO 13H)
Price(€/kWh)
L4+L3a+L2a
L2b
L1
7.3
0.5
Demand (MW)
3
L3b
5.45.255.15
0.8
1
CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE

13. DEMAND-SIDE OFFERS
• SIMULATION RESULTS: COST-DEMAND CURVE
– SUMMER PEAK, JULY 9, 2002. HOUR: 13-14H
Price(€/kWh)
CUSTOMERS: EXAMPLECUSTOMERS: EXAMPLE

14. EVOLUTION OF FLEXIBLE LOADS
January
0
500
1000
1500
2000
2500
3000
0:00 2:30 5:00 7:30 10:00 12:30 15:00 17:30 20:00 22:30
Time
Powerdemand(kW)
L1 L2 L3b L3a L4

15. January
0
500
1000
1500
2000
2500
3000
0:00 2:30 5:00 7:30 10:00 12:30 15:00 17:30 20:00 22:30
Time
Reductions(kW)
L1a (0.15€/kWh) L1b (0.25 €/kWh)
L1c (0.7 €/kWh) L2b (0.3 €/kWh)
33P>0.25
750.25>P>0.15
0.15>P
participationsPrice
(P)€/KWh

16. Balancing prices for January
14.00
16.00
18.00
20.00
22.00
24.00
26.00
28.00
30.00
32.00
34.00
36.00
38.00
40.00
1.00 3.00 5.00 7.00 9.00 11.00 13.00 15.00 17.00 19.00 21.00 23.00
HOURS
cent€/KWh
3
4
7
8
9
10
11
15
17
18
21
22
23
29
30
31
ESTIMATED INCOME FOR JANUARY 8TH 2003: 5,874.52 €
ESTIMATED LOAD CHANMCES IN
BALANCING MARKETS (JANUARY 2003)

17. CUSTOMERCUSTOMER
PARTICIPATION:PARTICIPATION:
CONCLUSIONSCONCLUSIONS

18. BENEFITS OF RETAILBENEFITS OF RETAIL--LOAD PARTICIPATION:LOAD PARTICIPATION:
REDUCTION OF PRICE VOLATILITY (DUE TOREDUCTION OF PRICE VOLATILITY (DUE TO
DEMAND ELASTICITY).DEMAND ELASTICITY).
THE CONSUMER MANAGE ITS PROFITS AND COSTS:THE CONSUMER MANAGE ITS PROFITS AND COSTS:
DEMAND IS FLEXIBLEDEMAND IS FLEXIBLE
PRICE OPPORTUNITIESPRICE OPPORTUNITIES
DEMANDDEMAND ≠≠ GENERATIONGENERATION
RECOVERY, LOAD CHANGES,..RECOVERY, LOAD CHANGES,.. →→ AADVANTAGES ANDDVANTAGES AND
DRAWBACKSDRAWBACKS
CONCLUSIONS

19. OPERATORS SHOULD FACILITATE THE PARTICIPATIONOPERATORS SHOULD FACILITATE THE PARTICIPATION
OF THE DEMAND:OF THE DEMAND:
ENERGY MARKETSENERGY MARKETS
ANCILLARY SERVICES AND NETWORK CONSTRAINTSANCILLARY SERVICES AND NETWORK CONSTRAINTS
IT IS NECESSARY TO PERFORM EXTENSIVE RESEARCHIT IS NECESSARY TO PERFORM EXTENSIVE RESEARCH
TO FIND THE DEMAND RESPONSE RESOURCESTO FIND THE DEMAND RESPONSE RESOURCES
IDENTIFICATION OF CUSTOMER SEGMENTSIDENTIFICATION OF CUSTOMER SEGMENTS
LOAD RESPONSE MODELSLOAD RESPONSE MODELS
PRICE AND COST EVALUATION TOOLS TO PERFORMPRICE AND COST EVALUATION TOOLS TO PERFORM
OFFERS AND BIDSOFFERS AND BIDS
CONCLUSIONS

20. Áreas de actividad
Área
Renovables
Área
Térmica
Área
Nuclear
Área
Eléctrica
Instituto de Ingeniería Energética
Prospectiva y
evaluación
Aplicaciones
no energéticas