Evaluation of Social and Economic Benefits of Demand Response

Abstract

The rapid development of demand response has realized the transformation of power system operation from isolated decision to interconnected communication, which is of great significance for improving power network flexibility, security and reliability. Also, by introducing demand response, power network investment for satisfying peak load could be delayed, while renewable energy consumption and power network economic operation could be promoted simultaneously. Based on the practice of demand response in China as well as to further encourage the application of demand response, this paper proposes a social and economic benefit evaluation model for demand response. Combined with the reality of China's electric power system operation, social and economic benefits of demand response are scientifically evaluated. Also, capital requirements for China to promote the application of demand response is analysed and practical measures for demand response application are put forward.