Published May 12, 2021 | Version v1

On the value and potential of demand response in the smart island archipelago

  • 1. Department of Energy, Power Engineering and Ecology, Faculty of Mechanical Engineering and Naval Architecture, University of Zagreb, Ivana Lucica 5, 10002, Zagreb, Croatia
  • 2. Department of Applied Mathematics and Computer Science, Technical University of Denmark, Matematiktorvet, 2800, Lyngby, Denmark
  • 3. Department of Energy and Power Systems, Faculty of Electrical Engineering and Computing, University of Zagreb, Unska 3, 10000, Zagreb, Croatia

Description

Existing studies propose different demand response models and often test them on islands that represent
test-beds for new technologies. However, proposed models are often simplified and integrated into
energy system models that do not consider the existing limitations of the power grid. This study proposes
a novel demand response model based on price differentials on the day-ahead electricity market.
The model is implemented in the distribution system that considers all relevant grid constraints. The
case study is conducted in an archipelago characterised by a medium-voltage distribution system connected
to the mainland grid. The obtained results showed that the implementation of the proposed
demand response model caused a 0.13 kV voltage deviation which did not cause voltage issues for the
observed distribution system. The breakpoint incentive was achieved for an incentive value of 23% of the
day-ahead market, and the demand response was not activated for higher values than the breakpoint
incentive. The highest savings amounted to 258.7 V for the scenario with the highest flexibility allowed.
The results implicate that implementing the demand response model in the grid would benefit all
observed stakeholders in the system.

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Additional details

Funding

European Commission
INSULAE - Maximizing the impact of innovative energy approaches in the EU islands 824433