The deployment of demand response in reserve markets has been widely discussed. Interruptible Load programs contract demand capacity from consumers in exchange for fixed and variable payments. System operators contract these resources to increase system resilience and use them for economic purposes. Although common, no ex-post evaluations of the program's performance and efficiency exists in the literature. To fill this gap, the paper presents a procedure to evaluate the optimal usage of these resources from a system operator perspective. A Mixed Integer Linear Problem is set to minimise the overall cost of the system using the participant demand resources in the tertiary reserve market, while ensuring that all technical and regulatory constraints are fulfilled in the evaluation. The proposed method describes a series of metrics to compare the optimal performance with the current scenario, and we draw a set of conclusions and policy recommendations from it. We apply the method to the Spanish Interruptible Load program. Our results show that during the five and a half years of the program, demand resources could have provided savings to the system of up to 23% of the cost of tertiary reserve.@en

Residential consumers are moving to the center of electricity systems and their flexibility is seen as a key resource to integrate renewable energy sources and support the grid. However, residential flexibility capacities are not homogeneous, as they depend on household appliances, comfort patterns, occupancy, and climate conditions. Here, we calculate the technical flexibility capacities of 45 consumer types in mainland Spain, organised according to income and regional criteria. We show that flexibility gaps exist at both regional and socioeconomic (income) levels with flexibility differences of up to 10 times more capacity between the household groups from the lowest to the highest capacities. These geographical and socioeconomic gaps in flexibility can lead to distortions in national markets and have the potential to exclude citizens from the provision of flexibility services. Our results show in quantitative terms that a consumer-centered approach without considering correcting measures nor these gaps in drafting energy policies may lead to increasing inequality levels in the residential sector. Under an economic competitive paradigm, households with lower income levels or located in regions with lower flexibility potential may be excluded from the provision of flexibility to the detriment of households with larger potential, raising justice concerns in a flexibility-based energy transition.@en

Integration of renewable energy sources require an increase in the flexibility of power systems. Demand response is a valuable flexible resource that is not currently being fully exploited. Small and medium industrial consumers can deliver a wide range of underused flexibility resources associated with the electricity consumption in their production processes. Flexible resources should compete in liberalized operation markets to ensure the reliability of the system at a minimum cost. This paper presents a new tool to assist industrial demand response to participate in operation markets and optimize its value. The tool uses a combined physical-mathematical modelling of the industrial demand response and a Parallel Particle Swarm Optimization algorithm specifically tuned for the proposed problem to maximize the profit. The main advantages of the proposed tool are demonstrated in the paper through its application to the participation of a meat factory in the Spanish tertiary reserve market during a whole year using a quarter-hourly time resolution. The enhanced performance of the proposed tool with respect to previous methodologies is shown with these four flexible processes examples, where the maximum available profit obtained in the simultaneous consideration of all different flexible processes is computed. The flexible processes are technical and economically characterized in a way that makes the tool valid for most of the processes in the industry.@en

Domestic rooftop photovoltaic (PV) energy can reduce net electricity demand, and therefore reduce energy prices through a merit-order effect. This reduces profits of all incumbents in the electricity markets. In addition, in imperfectly competitive markets, PV self-generation reduces prices through a reduction in market power. The first effect may warrant additional policy interventions to maintain cost recovery, but the second is much more desirable, as it simultaneously helps increase sustainability and competition. However, unlike a simple reduction in market prices, the competition effect affects all incumbents differently. Since resistance from incumbents can be a significant barrier to energy policy change, it is important to understand the distribution of effects. This paper does so for the Spanish market. A Nash-Cournot model and a simplified representation of the Spanish electricity market is used to determine the merit-order and competition effects of an increase in solar self-generation. We conclude that both are important, and that their analysis is essential to inform the social debate around PV policy.@en

A transition to a sustainable energy system is essential. In this context, smart grids represent the future of power systems for efficiently integrating renewable energy sources and active consumer participation. Recently, different studies were performed that defined the conceptual architecture of power systems and their agents. However, these conceptual architectures do not overcome all issues for the development of new electricity markets. Thus, a novel conceptual architecture is proposed. The transactions of energy, operation services, and economic flows among the agents proposed are carefully analysed. In this regard, the results allow setting their activities’ boundaries and state their relationships with electricity markets. The suitability of implementing local electricity markets is studied to enforce competition among distributed energy resources by unlocking all the potential that active consumers have. The proposed architecture is designed to offer flexibility and efficiency to the system thanks to a clearly defined way for the exploitation of flexible resources and distributed generation. This upgraded architecture hereby proposed establishes the characteristics of each agent in the forthcoming markets and studies to overcome the barriers to the large deployment of renewable energy sources.@en