Overview of the topic
Effective management of natural resources, particularly grid stabilization, is increasingly critical for nations globally Demand Response (DR) has emerged as a cutting-edge solution that not only safeguards the grid system but also fosters mutual benefits for consumers and electricity retailers Despite being researched and implemented for years, DR remains a relevant topic with significant development potential This book seeks to provide readers with an insightful overview of this multi-billion dollar initiative.
Difficulties in this project
While there are numerous references available on the topic, many reliable sources exceed our team's budget Additionally, as this is our first experience in creating an academic report, we may encounter challenges such as informal language and the use of inaccurate statistics.
Scope of the study
This study examines the development of demand response (DR) programs in Singapore, South Korea, and Japan, aiming to provide a deeper understanding of the events that shaped these programs in each country By analyzing these developments, we facilitate a comparative assessment of the distinct DR models implemented in each nation.
Research Methodology
We use the method of listing, comparing and analyzing each stage of development of DR model in the three mentioned to clearly visualize DR programs advancement.
Structrue of the report
– Chapter 1: Demand response definition and things related to demand response
– Chapter 2: Demand response in Japan
– Chapter 3: Demand response in South Korea
– Chapter 4: Demand response in Singapore
DEMAND RESPONSE DEFINITION AND THINGS RELATED TO DEMAND RESPONSE
THINGS RELATED TO DEMAND RESPONSE
Demand Response (DR) refers to the adjustments in electricity consumption by end-users in reaction to fluctuations in electricity prices or incentive payments This strategy aims to encourage reduced energy use during periods of high wholesale market prices or when the reliability of the electricity system is at risk.
During heat waves, consumers often first learn about demand response programs due to concerns over power supply For instance, last summer in New York City, the grid "shed load" by reducing power to public services, while ConEdison initiated a voluntary program allowing customers to adjust their air-conditioner thermostats during peak hours Participants in these programs receive rebates, which help alleviate the need for costly and polluting auxiliary power plants, or the drastic measure of cutting off power to certain areas.
Demand response has proven to be an essential tool for maintaining grid reliability during winter months Last winter's extreme cold raised concerns about the stability of the grid, particularly as some generators experienced failures In Texas and other regions, grid operators relied on demand response resources to prevent potential brownouts and blackouts.
– Dispatchable Incentive-based DR Programs:
The Curtailable Load Program (CLP) is a voluntary initiative aimed at industrial and commercial customers with flexible production lines that can adjust their electricity consumption levels Designed to enhance efficiency and lower production costs for marginal electricity units, the program notifies customers at least 24 hours before peak hours to assess their ability to reduce power usage the following day Participants who successfully decrease their electricity consumption are rewarded with financial incentives, making the CLP a beneficial option for businesses looking to optimize their energy usage.
The Emergency Demand Response Program (EDRP) is a voluntary initiative aimed at industrial and commercial customers with flexible production capabilities, allowing them to rapidly adjust or reduce electricity consumption This program plays a crucial role in maintaining power system reliability during overload situations Participants, who can swiftly decrease their power usage—typically within two hours of notification—are incentivized with significant rewards for their cooperation.
– Non-dispatchable Time-based DR Programs:
The two-tiered electricity pricing program, designed for customers already on a Time of Use tariff, consists of a demand charge and an energy charge This program does not offer direct financial incentives; instead, it encourages customers to actively manage their electricity usage in response to price signals, particularly during peak hours Customers who consume electricity during peak times will face charges that are double those of off-peak periods, motivating them to adjust their demand to lower their electricity bills.
+ Real-time peak-load electricity tariff program or PLT-DR (voluntary program targeted at industrial and commercial customers) The price includes TOU tariff and
7 special tariff for the peak time periods (The peak time periods are announced on a case- by-case/time-to-time by authorized operators.).
In this model, financial incentives are absent; instead, the reward for implementing load curtailment as a last resort to preserve the power system's integrity is preferential treatment.
In this model, financial incentives are absent, and the primary reward is goodwill, as customers contribute to social good However, it remains uncertain how corporations can reflect this goodwill in their accounting systems Such scenarios are infrequent, as reducing power without compensation can significantly impact customers' production activities and revenue.
1.3) The reason that a company want to participate in demand response:
Commercial and institutional customers can contribute to grid stability and save money by reducing power consumption during peak times This reduction can often be implemented in ways that are virtually unnoticed by end users, such as adjusting thermostat settings on supermarket freezers or dimming lobby lights in hotels for short periods.
Earnings from demand response participation differ based on the utility and region, with PJM leading in innovative implementation and offering substantial payments for voluntary reductions In a notable instance in 2012, PJM disbursed $5 million to companies engaging in demand response initiatives.
8 providers Equipment provider Schneider Electric says demand response programs can earn back 5 percent to 25 percent of their annual electricity costs.
1.4) The reason that a utility wants customers to participate in DR programs:
Many states incentivize utilities to reduce energy consumption, especially during peak hours, through demand response programs These initiatives aim to minimize the need for "peaker plants," which are only activated during high-demand periods By leveraging power curtailments instead of constructing new power plants, utilities can efficiently manage energy needs For example, New York has access to 543 megawatts of curtailments from commercial and industrial customers, equivalent to the capacity of a medium-sized power plant.
Keeping power plants idle can significantly lower electricity costs by reducing the need for expensive power generators during peak demand periods, particularly in the late afternoon This strategy allows grid operators to manage load more effectively and avoid peak-time pricing For instance, PJM reported that voluntary curtailments in one week of 2012 resulted in savings exceeding $650 million in its region.
1.5) How demand response is different from energy efficiency:
The key to demand response is in its name Put simply, it means responding to demand in the market, to balance the supply and demand equation.
To manage costs during high pricing periods, consider temporarily reducing your power usage by either partially or fully switching to a backup generator or turning off non-essential operations.
Unlike demand response, the goal of energy efficiency is to reduce how much energy your business uses It’s an ongoing approach that requires more efficient use of power.
Demand response typically involves no upfront investment, whereas implementing energy-efficient processes may require initial costs, such as improving insulation or upgrading to more energy-efficient machinery.
Utilities have the option to implement their own demand response programs or partner with third-party providers like EnerNoc and Comverge These companies install control equipment at customer locations and handle curtailments in response to price signals from grid operators EnerNoc oversees the energy demand of tens of thousands of commercial sites from a centralized network operations center, where staff actively monitor energy usage and offer their services in wholesale energy markets.
DEMAND RESPONSE IN JAPAN
2.1) History of DR in Japan:
+ Great East Japan Earthquake, subsequent Tsunami
Fig 1 Great East Japan Earthquake Fig 2 Subsequent tsunami
+ Fukushima Nuclear-Accident made Rolling Blackout in TEPCO Area, Nation-wide campaign for saving kWh.
In March 2011, the Fukushima Daiichi Nuclear Power Station suffered significant damage due to the Great East Japan Earthquake and the resulting tsunami Before this disaster, nuclear energy accounted for 29% of Japan's electricity supply, with fossil fuels and renewable sources contributing 62%.
(liquefied natural gas (LNG), 29%; coal, 25%; oil, 8%) and 10% (hydropower, 9%; other renewables, 1%).
Fig 3 Fukushima Nuclear-Accident Fig 4 View after the earthquake
“Smart House & Building Standardization and Business Study Committee”
Fig 6 Open-ADR (TSO-Aggregator)
In 2013, nuclear energy contributed just 1% to the overall power supply, while fossil fuels dominated the market with a substantial 88% share—comprising 43% from LNG, 30% from coal, and 15% from oil Meanwhile, renewable energy sources accounted for 11%, with hydropower making up 9% and other renewables contributing 2%.
The dramatic fall in nuclear power generation was due to a suspension of operations after the disasters The nuclear power plants that were not directly damaged
In September 2013, all 48 of Japan's nuclear reactors were shut down for scheduled maintenance following an earthquake, with the last two reactors ceasing operations at the end of the month These reactors remain inactive pending approval from the Nuclear Regulation Authority (NRA) to restart.
As of early 2023, nearly 50% of nuclear reactors were undergoing NRA safety assessments, but full approval for their restart is expected to take at least six months or longer due to the thorough evaluation process Additionally, the resumption of operations requires the agreement of local governments and acceptance from surrounding communities.
In January 2016, (METI) “Energy Resource Aggregation Business Study Committee” was held:
– Third Meeting of “Smart House & Building Standardization and Business Study Committee” (May 15, 2013)
+ DR Technology and Standard - Summarize use cases of demand response (DR) and prepare a standard method for automated DR between power utilities and aggregators based on Open-ADR -
The "Specification for DR Interface, Ver 1.0" outlines the requirements for Open-ADR 2.0a and portions of 2.0b, mandating that vendors create software and hardware that adhere to the conformance rules established by the Open-ADR Alliance Compliance with these specifications ensures interoperability and effective demand response solutions within the energy sector.
On February 29, 2016, four smart community projects funded by the Japanese government, in partnership with the private sector, implemented various residential demand response schemes These demonstration experiments, conducted from FY2011 to FY2015, achieved peak reduction levels of 10% to 20% by utilizing a combination of technologies, including Home Energy Management Systems (HEMS).
Researchers from Kyoto University, led by Professor Ida, have conducted cost-benefit simulations to assess the impact of expanding residential demand response (DR) across Japan, excluding Okinawa This study aims to evaluate the costs and benefits of universal adoption of Home Energy Management Systems (HEMS), as proposed by Japan's Cabinet Secretariat in 2012, focusing on time-of-use (TOU) and critical-peak pricing (CPP) for residential electricity users.
Fig 7 Peak demand reduction by each DR retail menu (left axis: MW, right axis: %)
Rules for transactions between businesses and communication standards for remotely controlling energy devices were enacted within fiscal 2016.
All of these things push the formation and development of DR quickly in Japan.
The Ministry of Economy, Trade and Industry (経 済 産 業 省, Keizai-sangyō- shō) or METI, is a ministry of the Government of Japan It was created by the 2001
Central Government Reform when the Ministry of International Trade and
Industry (MITI) merged with agencies from other ministries related to economic activities, such as the Economic Planning Agency.
The Ministry of Economy, Trade and Industry (METI) oversees a wide range of policy areas in Japan, including industrial and trade policies, energy security, arms export control, and the "Cool Japan" initiative Renowned for its liberal environment, METI is recognized for the exceptional quality of its officials, earning it the nickname "human resource agency" due to its influential leaders in politics, business, and academia.
In 2017, Japan's Ministry of Economy, Trade and Industry (METI) launched the "Negawatt" market, marking the first auction for demand response (DR) that successfully garnered approximately 1GW of capacity from industrial and commercial power consumers While Demand Side Management (DSM) initiatives have been tested in pilot projects, they have yet to be fully commercialized, despite the significant DR potential recognized in Japan Currently, participation in the DR market is voluntary; however, following the 2011 nuclear reactor shutdowns in the TEPCO service area, mandatory peak load reductions led to a 15% decrease in peak load (Takahashi 2013) According to the Sasakawa Peace Foundation (2018), DR could potentially lower the national peak load by around 9%, with the government aiming for a 6% reduction in peak demand by 2030.
– Eliminates need for 10 million kilowatts in power generation capacity, or 10 nuclear reactors
– Allows power companies to slash up to 90 billion yen per year in facility renovation, construction, and operations costs.
– Negawatt aggregators play core role serving as mediator between consumers who control electricity demand and electricity utilities, and in tallying electricity savings from consumers
– METI has drawn up guidelines for negawatt trading, including power-saving calculation.
– Japan selects Enernoc to expand demand response market:
Enernoc, a global energy intelligence software firm, has partnered with the Japan Institute of Applied Energy (IAE) to launch a demand response program aimed at enhancing grid reliability for transmission, distribution, and system operators in Japan This collaboration will assist power companies in balancing electricity demand with available supply to prevent blackouts David Brewster, president of Enernoc, emphasized that the project signifies progress in Japan's ongoing electricity market reform and highlights the global significance of demand-side management This partnership builds on Enernoc's previous efforts with Japanese government departments to implement demand response initiatives.
Fig 8 Logo of Enel X company
Enel X, a subsidiary of the Enel Group based in Rome, focuses on energy transformation through innovative products and services designed for homes, cities, and industries, promoting sustainable development The company leverages digital transformation solutions to enhance electric mobility, smart homes, smart cities, intelligent public lighting, renewable energy integration, and energy efficiency for businesses and public administrations Additionally, Enel X has been actively involved in the Japanese demand response market.
2013 The solutions provider is hoping to use the contract to provide the largest demand response capacity to the government of Japan.
Fig 10 The headquarters of Enel X in Rome
– State funded demand response initiatives:
Japan is prioritizing renewable energy and demand-side resources to secure its energy supply while minimizing environmental impact, especially in the wake of the recent energy crisis The government aims to increase the share of renewable energy in national consumption to 24% by 2030, alongside boosting nuclear power to approximately 20%, still below pre-Fukushima levels While the potential for expanding hydroelectric power remains limited at 9%, Japan plans to enhance solar photovoltaic (PV) power to 7%, with additional contributions from biomass (5%), wind power (2%), and geothermal power (1%) Notably, PV power generation capacity is projected to rise significantly from 13GW in 2013 to 64GW by 2030, marking a fivefold increase.
The Japanese government aims for a 17% reduction in energy consumption through demand-side management, focusing on enhancing residential energy efficiency Currently, most households in Japan are billed with flat-rate tariffs via traditional analog meters; however, the government plans to implement digital smart meters in approximately 50 million homes by 2024 This initiative, coupled with the introduction of home energy management systems (HEMS) and dynamic pricing models like critical peak pricing (CPP) and real-time pricing (RTP), is designed to encourage residential consumers to utilize electricity more efficiently.
2.2) How DR affects people in Japan
First, let’s take a look at Table 1, which shows the peak cut in the TEPCO service area Peak demand in post-disaster 2011 dropped 18% from the pre-disaster
21 peak demand in 2010 Consequently, the TEPCO service area was able to avoid massive blackouts.
During the summer months from July 2 to September 2, TEPCO's service area experienced a significant decline in peak electricity demand, as illustrated in Chart 1 Average peak demand fell from 51.32 gigawatts (GW) in 2010 to 40.89 GW in 2011, representing a notable reduction of 20.3% among consumers in the Kanto region Although the average high temperature in 2011 was 1.6°C lower than the exceptionally hot summer of 2010, this still indicates a substantial achievement of approximately 15% reduction in peak demand, highlighting the effectiveness of energy conservation efforts.
In the Kansai region, the peak demand for electricity during the summer of 2011 decreased by 10.1% compared to 2010, which is notably less than the reduction observed in the TEPCO service area By 2012, this decline had increased to 13.4%, despite temperatures being 1.1°C higher than the previous year This significant drop in demand can be attributed to a widening supply shortage in the Kansai region, prompting consumers to adjust their electricity usage in response.
DEMAND RESPONSE IN SOUTH KOREA
In a power system, electricity demand fluctuates continuously, requiring power suppliers to adjust generation accordingly—producing more during peak demand and less during low demand Traditionally, this coordination has been the supplier's responsibility, with the demand side viewed as secondary Suppliers forecast demand to determine the necessary supply capacity, which influences market pricing Additionally, unadjustable supply capacity is supplemented by demand-side management (DSM) strategies, such as temporarily reducing or shifting loads on the demand side.
There is an increasing interest in aligning demand with supply, as technological advancements are transforming both sides Demand response serves as an effective alternative to expanding infrastructure, helping to ensure a safe balance between generation or distribution capacity and consumer demand According to the United States Department of Energy, demand response is a crucial strategy in managing energy consumption efficiently.
End-use customers are adjusting their electricity consumption in response to fluctuating prices and incentive payments aimed at reducing usage during peak times or when system reliability is at risk In this context, traditional Demand-Side Management (DSM) programs need to be restructured into automated, market-based mechanisms It is essential that demand-side resources provide reliable, rapid, flexible, and substantial responses to effectively compete with supply-side resources.
DSM programs can be classified into Load Management (LM) type and Energy Efficiency (EE) type Traditionally, the LM-type programs have been focused
29 on in Korea The history of Demand Side Management (DSM) in Korea started in
Since the introduction of an inverted-tier rate program in 1974, various load management (LM) programs have been implemented to enhance load factors, including EE-type programs in the 1980s and LM programs in the 1990s aimed at addressing declining system reserve rates The year 2000 marked a significant reform in the electricity industry, leading to the division of the generation sector into six companies and the establishment of a wholesale electricity market, with governance of demand-side management (DSM) programs shifting from Korea Electric Power Company (KEPCO) to the government Prior to 2009, the most impactful LM initiatives included the summer vacation and maintenance adjustment program, which shifted load away from peak summer periods, and the self-reduction program encouraging voluntary load reductions during peak times The peak reductions achieved through these DSM programs are detailed in Table 1 (KEPCO, 2009).
Table 1 DSM results in Korea since 1991
The LM scheme required reform due to its inefficient operations stemming from inflexibility and insufficient customer data in its design In 2009, two widely-used LM programs, the summer vacation and maintenance adjustment program, along with the self-reduction program, were discontinued In their place, the designated period participation program and the one week-ahead-notice program were introduced to enhance effectiveness and adaptability.
Peak Load Reduction by DSM program
The currently running programs are summarized in the Table 2.
Table 2 List of currently-running DSM programs
The government initiated a market-based real-time Demand Response (DR) pilot program in 2008 to address the need for incentive-based load reductions This program allows participants to bid their prices and load reduction levels when electricity demand surges, serving both reliability and peak reduction purposes, with a benefit-cost ratio ranging from 2.4 to 2.7 Initially designed for summer operations, the program was unexpectedly activated in winter 2009 due to severe weather conditions that increased heating demand and caused maximum electricity loads Additionally, maintenance on some generators led to dangerously low reserve rates, necessitating the winter launch of the DR market program The anticipated rise in Electric Heat Pump (EHP) usage further underscores the program's relevance.
32 increase the winter electric peak demand even higher Therefore, the government has a plan to transform the DR market program from a seasonal program to a whole-year program.
To manage peak load conditions, electric utilities must invest in system capacity that often remains underutilized Consequently, these utilities are exploring strategies to enhance capacity utilization, with demand response (DR) being a key approach to reduce or shift peak customer load effectively.
In a demand response (DR) program, two primary remuneration methods are utilized: price-based and incentive-based The price-based DR program encourages consumers to lower their electricity usage in response to fluctuating market tariffs, while the incentive-based program provides additional rewards for participating in energy-saving initiatives.
DR program, consumers are contracted by individuals or groups to reduce their power consumption for a certain period that the economic transactions requested in the electricity market.
For over two decades, demand response (DR) resources have been crucial in Korea, particularly in managing peak demand during the summer and winter months Extensive research and implementation of DR programs and operating systems have been conducted as part of demonstration projects to effectively address these seasonal challenges.
2010 In 2014, any customers who joined the DR market were able to sell their reduced demand in the electricity market as supply resources.
3.2.1) Status of Demand Resources Market, South Korea:
The Korea Power Exchange (KPX) is responsible for managing South Korea's electricity market and power system, overseeing real-time dispatch and formulating supply and demand strategies Each year, KPX publishes an annual report analyzing trends in the electricity market This summary focuses on the demand resource market as outlined in the 2016 annual report.
Demand response encompasses a range of policies designed to enhance the efficiency and stability of electric power services while minimizing costs by encouraging consumers to adjust their consumption habits However, in South Korea's existing contract-based utility rate system, consumers face limited motivation to engage voluntarily in demand response initiatives.
The implementation of demand response programs plays a crucial role in stabilizing the electricity market and improving system operations By reducing electricity consumption during peak periods, demand response can significantly lower investments required for power generation, transmission, and transformation networks, thereby enhancing the reliability of electric power supply Consumers can actively participate in these programs by monitoring their electricity usage and offering to reduce loads during critical times, which can be managed by KPX through bidding processes.
Since its inception in early 2008, the demand response market has evolved from a bidding-based system supported by the Electricity Industry Fund to a sophisticated market linking real-time pricing with system operations By 2012, the introduction of a smart demand response market enabled the trading of small to medium demand resources, leveraging smart grid technology for enhanced reliability and accessibility This market operates on a fixed payment model, rewarding participants for maintaining their capacity and for reducing demand when requested by system operators Following revisions to the Electricity Business Act in 2014, the previous demand response frameworks were phased out, culminating in the discontinuation of two-month-ahead and week-ahead programs by late 2015.
At the end of 2015, a new demand response market replaced these previous
The demand response market integrates 34 programs into the electricity market, facilitating the trading of demand resources organized by retailers Each demand resource must consist of over ten end users and be valued above 10 MW DR aggregators gather consumers to create these demand resources, which, upon registration with KPX, are certified for trading under the same regulations as centrally dispatched generators Daily bidding occurs where demand resources compete against power generation resources, initiating demand curtailment once sold Consumers are then required to reduce their demand within one hour of receiving a dispatch order.
Fig 14 Trading mechanism of a demand response market
The KPX calculates curtailed energy and compensates retailers, who then pass on the benefits to consumers Recent data shows remarkable growth in the demand response market, with consumer participation increasing from 90 to 3,592 and curtailed energy rising from 513 MWh to 175,771 MWh, marking a 342.6-fold increase and establishing it as a leading global demand response market This evolution is politically significant, as the program's maturation and integration of demand resources into the electricity market will enhance understanding among market participants, fostering growth Additionally, this shift is anticipated to reduce resistance from generators and lower greenhouse gas emissions.
35 market exploitation and a more efficient market.
Table 3 Consumers and curtailed power before market opening
Fig 15 The structure of a demand-side management solution.
Fig 16 Dashboard of power usage
Table 4 Consumers and curtailed power after market opening
(provided by KPX, July 2018) 3.2.2) Development of Demand-Side Management Solution (DSMS):
DEMAND RESPONSE IN SINGAPORE
Some images of Tokyo Power Electric Company (TEPCO)
Fig 1 Peak demand and peak usage in July 19 , 2020 th
Fig 2 Explanation of the color in the rate of electricity use
Fig 3 Electricity demand graph of TEPCO (taken in July 19 , 2020) th
Fig 4 Electricity demand graph of TEPCO (taken in July 19 , 2020) th
Leading companies in utilizing demand response
Advantages of demand response
Demand response significantly enhances the resource efficiency of electricity production by aligning electricity prices more closely with the value customers place on it This improved efficiency yields a range of benefits that can be categorized into four distinct groups.
– Participant financial benefits are the bill savings and incentive payments earned by customers that adjust their electricity demand in response to time-varying electricity rates or incentive-based programs
Demand response significantly lowers wholesale electricity prices by reducing the reliance on expensive power plants during peak demand periods This decrease in production costs benefits all wholesale electricity buyers and, over time, leads to reduced overall system capacity needs Consequently, utilities and retail suppliers can invest in less new capacity, ultimately translating these savings into lower bills for retail customers.
Reliability benefits stem from operational security and cost savings achieved through demand response, which reduces the risk and impact of forced outages By minimizing these outages, demand response helps alleviate financial burdens and inconveniences for customers, ensuring a more stable and efficient energy supply.
– Market performance benefits refer to demand response’s value in mitigating suppliers’ ability to exercise market power by raising power prices significantly above production costs.
Challenges of demand response
The primary challenge facing demand response is the creation of precise control and market frameworks to effectively utilize this diverse resource, balancing the needs of the power system and individual consumers This necessitates the development of intricate models of electrical demand at both component and system levels Accurate simulation and forecasting models are essential for realistic planning and evaluation, enabling the assessment of demand response's suitability for various system services and its overall value Future efforts must focus on operational demand models that can generate accurate control signals, accounting for the dynamic, uncertain nature of demand and the complexities of end-user interactions with the system.
Future of demand response
The evolution of the digitally enabled grid is significantly reshaping the demand-response landscape, fostering new dynamics in demand management and motivating customers to alter their behavior.
From the perspective of distribution utilities, controlling air conditioning and water heaters provides a reliable and direct way to predict energy consumption responses, enhancing operational certainty.
A digitally enabled grid introduces increased complexity for utilities, as it allows for a variety of mechanisms to manage and influence demand By utilizing diverse pricing signals and tailored responses, utilities can effectively target specific users within their homes, enhancing overall energy efficiency and responsiveness.
81 including cost-to-serve parameters And when customers have the ability to manage the scale and timing of consumption by devices, their responses need to be verified.
The increasing granularity and localization of demand response initiatives highlight the critical decisions utilities face in prioritizing outcomes, such as balancing bulk generation with managing local distribution congestion Regardless of the specific objectives, it is essential to implement measurement and verification processes to ensure that customers who reduce their energy consumption are accurately compensated.
The shift towards localized demand response in today's distribution grid introduces a new level of complexity However, utilities should recognize that the substantial benefits, including deferred capital expenditures and enhanced quality, far exceed these challenges As the digitally enabled grid advances, integrating customer flexibility into a more optimized distribution system will become increasingly manageable.
Similarities and diffenences of demand response in Japan, South Korea and Singapore
DR is dedicated to safeguarding the interests of individuals and businesses involved in the supply and protection of the grid system This commitment not only helps preserve natural resources but also enhances the overall quality of life.
– Due to the double earthquake disaster, the tsunami caused the fu-ku- shi-ma nuclear power plant explosion in November
Since the events of 2011, the reliance on nuclear power has significantly decreased, ultimately leading to its elimination due to the high costs associated with reactivating nuclear power plants This shift has resulted in a growing concern over electricity shortages.
– This caused massive supply shortfalls, leading to the first large-scale scheduled rolling blackouts in TEPCO’s 60- year history
Demand Side Management (DSM) programs in Korea can be categorized into Load Management (LM) and Energy Efficiency (EE) types Historically, Korea has primarily focused on LM-type programs, which began in 1974 with the introduction of an inverted-tier rate program aimed at enhancing the load factor.
– In 1980s, EE-type programs were introduced – In 1990s, the LM programs which can increase the system reserve capacity were introduced – In 2000, wholesale electricity market was introduced
– The Energy Market Authority (EMA) issued a public consultation paper on 22 October
In 2012, a consultation was conducted to gather feedback on the proposed Demand Response program for the National Electricity Market of Singapore (NEMS) The consultation period ended on November 19, 2012, and involved responses from various stakeholders, including electricity licensees, potential licensed load providers, consumers, and other interested parties.
– Based on the feedback received from the public consultation paper and
In 2009, two prominent LM programs—the summer vacation and maintenance adjustment program, along with the self-reduction program—were discontinued In their place, the designated period participation program and the one week-ahead-notice program were introduced.
The Demand Response (DR) program, initiated by the government in 2008, addresses the need for a market-based, real-time approach to energy management Initially launched as an incentive-based program, it has undergone significant refinement over the years This paper outlines the essential features and regulatory framework that define the Demand Response program.
– Raising the setting on air-conditioners to 28 C, reducing the number of lighting fixtures in use, switching to energy efficient LED light bulbs, switching office computers
– The Korea Power Exchange (KPX) – Every year, the KPX has issued an annual report for the electricity market trend and analysis Demand response refers to a suite of
– When DR implement in the form of demand- side bidding, it become a double- side market Along with the generator bid, the demand side customer
Operation to battery mode during peak demand afternoon hours…
To address summer peak electricity consumption, various strategies have been implemented, including shifting factory operations to nighttime and alternating business hours to reduce overall operating times Additionally, production was ramped up in June to meet summer demand through stockpiling, particularly in western Japan, where electricity shortages were not an issue, and there was also an increase in overseas production to help alleviate pressure.
Large factories significantly influenced the energy landscape by fully utilizing private power generators and installing new ones In response, the government implemented policies and established institutions aimed at delivering efficient, stable electric power services at minimal costs, encouraging consumers to modify their consumption patterns However, consumers exhibit limited motivation to engage voluntarily in demand response initiatives.
Consumers can participate in demand response programs by reducing electricity usage during peak times, either by monitoring demand or by securing a load that can be temporarily shut down by KPX Upon registration with KPX, these resources are certified for trading under the same regulations as centrally dispatched generators Demand resources compete daily in bids against power generation resources, allowing licensed retailers and contestable customers to submit bids for energy for the upcoming half-hour period.
Retailers participating in Demand Response can submit their linear ramp up and ramp down rates, along with a default bid that includes implied energy consumption across up to 10 tranches of price-quantity pairs.
Retailers participating in Demand Response can submit their linear ramp-up and ramp-down rates along with a default bid, which includes implied energy consumption represented by up to 10 tranches of price-quantity pairs.
– The MCE collect all generator and demand- side bids the perform
85 an order to restrict the use of electricity under Article
The Business Act mandates a 15% reduction in peak demand for large-scale consumers with a contract power of 500 kilowatts or more, and it includes stringent enforcement measures, including fines for non-compliance.
Response curtailment begins In the system operation process, consumers are required to cut down on demand within an hour of a dispatch order.
The KPX calculates curtailed energy and compensates retailers, such as ENEL X, who then pass on the profits to consumers ENEL X utilizes market clearing and economic dispatch to manage required load shedding, which is redirected back to the retailer Additionally, the Market Clearing Engine (MCE) determines the nodal price and the Uniform System Energy Price (USEP) The processes involve multi-agent simulation and specific bidding strategies to optimize energy distribution and pricing.
[1] Hideo Ishii, “Japan Demand Response Market Overview,” Ph.D dissertation, Falc Sci Eng., Waseda Univ., Tokyo, Japan, 2019 [Online] Available: https://www.openadr.org/assets/20191008%20OpenADR
[2] Jensterle, M and Venjakob, M “Smart power grids and integration of renewables in Japan” Wuppertal Institute, 2019.
[3] “The Electric Power Industry in Japan 2019”, Japan Electric Power Information Centre.
[4] Enel X, Wikipedia, Jul 2020 [Online] Available: https://en.wikipedia.org/wiki/Enel_X
[5] Ministry of Economy, Trade and Industry, Wikipedia, Jun 2020 [Online]
Available: https://en.wikipedia.org/wiki/Ministry_of_Economy,_Trade_and_Industry
A study by Ida Takanori, M Kayo, and T Makoto from Kyoto University explores electricity demand response in Japan, providing experimental evidence from a residential photovoltaic generation system The research highlights the effectiveness of integrating renewable energy sources in managing electricity consumption patterns For further details, the full paper can be accessed online at Kyoto University's project center.
Recent advancements in virtual power plants and demand response highlight the significant potential of electric vehicles (EVs) and solar photovoltaics following the feed-in tariff (FIT) period The integration of information and communication technology (ICT) is crucial for enhancing the adoption and effectiveness of these renewable energy sources.