Standards Development
This guideline specifies the evaluation criteria for the adjustment potential of demand side resources. Demand side resources covered in this specification include industrial, commercial and residential adjustable loads, distributed energy resources, microgrids, and other resources connected to power grids and capable of adjusting operating state and exchanging information. This guideline provides the evaluation principles, index pools, constraints, data processing, procedures, and results analysis for the adjustment potential evaluation of demand side resources.
The growing integration of large-scale wind power, photovoltaic and other renewable energy generations is transforming power grids into power systems with high penetration of renewable energy. The insufficient flexible resources have become a more and more prominent issue, aggravated by the decreasing proportion, decommission, and replacement of traditional thermal and gas-fired generators. It is more and more difficult to cope with the inherent volatility and intermittency issues of wind and photovoltaic power generations, and rises the operation risk of power systems. The demand side resources (DSR) possess a great potential for flexible adjustment to power systems. Through demand response (DR), virtual power plant, ancillary services, etc., DSR can provide capacity to cope with the fluctuation and intermittency issues, support the stable and safe operation of power systems, and enhance the hosting capability and consumption of renewable energy.
DR is developing rapidly all over the world. Countries like the United States, France, Australia, Japan, and China have rolled out relevant policies and mechanisms to implement DR through time-of-use electricity price, interruptible load, demand side bidding, direct load control, etc. In the future, with the rapid growth of distributed energy resources and dispatchable load resources, it is expected that the global DR capacity will reach 177GW by 2030. (Data Source: 2018 Global Demand Response Forecast, published by Bloomberg New Energy Finance).
The DSR includes not only the traditional industrial, commercial, residential adjustable loads but also energy storage, electric vehicles, distributed energy resources (DER), microgrid resources, etc. The global capacity of industrial and commercial adjustable loads participating in DR will increase from 39.8 GW in 2020 to 64.3 GW in 2029 (Data Source: Market Data: Commercial and Industrial Demand Response, published by Guidehouse). The global residential DR capacity is expected to increase from 13.8 GW in 2019 to 47.4 GW in 2028 (Data Source: Market Data: Residential Demand Response, published by Navigant Research).The number of electric vehicles around the world will increase from 10 million in 2020 to 145 million by 2030 (Data Source: Global Electric Vehicle Outlook 2020, published by the International Energy Agency). The global installed capacity of DER, such as wind, solar, combined heat and power, will increase from 132.4 GW in 2017 to 528.4GW in 2026 (Data Source: Global DER Deployment Forecast Database, published by Navigant Research). The installed capacity of microgrids will increase from 3.5 GW in 2019 to 20 GW by 2028 with an annual growth rate of 21.4% (Data Source: Microgrid Overview, published by Navigant Research).
The adjustment potential evaluation of DSR may serve multiple stakeholders:
- For grid operators, it may support the development of pricing and incentive policies, as well as resource scheduling plans; facilitate comprehensive and optimal DSR allocation, and exploit flexibility potentials for power grid operation.
- For load aggregators, it may support the development of more precise DSR control strategies and efficient participation in market activities.
- For users, it may provide references for participating DR programs and economic scheduling of power consumption and DER energy using/selling.
- In general, it may enhance the interaction between power users and power grids.
By far, the scheduling rules and methods for traditional power generation resources on the supply side are relatively mature and common around the world. While, there is no unified standard to provide references on evaluating the DSR adjustment potential as flexibility resources for power grids from a systematic view.
To promote the efficient utilization of DSR, enhance the demand side management, and improve the flexibility of power grids, it is necessary to develop a guide for the adjustment potential evaluation of DSR. This guide is to specify the definition and classification of DSR, define the adjustment potential, provide the basic evaluation requirements, evaluation index pool, constraint conditions, data processing, evaluation result analysis, etc. It can provide a reference basis for power grid operators, DSR aggregators, power users to reasonably and economically participate in power market activities.
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