کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
994025 936063 2008 11 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
An economic welfare analysis of demand response in the PJM electricity market
موضوعات مرتبط
مهندسی و علوم پایه مهندسی انرژی مهندسی انرژی و فناوری های برق
پیش نمایش صفحه اول مقاله
An economic welfare analysis of demand response in the PJM electricity market
چکیده انگلیسی

We analyze the economic properties of the economic demand-response (DR) program in the PJM electricity market in the United States using DR market data. PJM's program provided subsidies to customers who reduced load in response to price signals. The program incorporated a “trigger point”, at a locational marginal price of $75/MWh, at or beyond which payments for load reduction included a subsidy payment. Particularly during peak hours, such a program saves money for the system, but the subsidies involved introduce distortions into the market. We simulate demand-side bidding into the PJM market, and compare the social welfare gains with the subsidies paid to price-responsive load using load and price data for year 2006. The largest economic effect is wealth transfers from generators to non price-responsive loads. Based on the incentive payment structure that was in effect through the end of 2007, we estimate that the social welfare gains exceed the distortions introduced by the subsidies. Lowering the trigger point increases the transfer from generators to consumers, but may result in the subsidy outweighing the social welfare gains due to load curtailment. We estimate that the socially optimal range for the incentive trigger point would be $66–77/MWh.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Energy Policy - Volume 36, Issue 10, October 2008, Pages 3692–3702
نویسندگان
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