Demand Response

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This refers to a range of programs which alter the load seen by a utility in response to an economic or reliability-based dispatch instruction. While many program rules are in development, DERs of various configurations can be used for certain DR programs.

A key distinction is made between two kinds of demand response programs – day-of notification and day-ahead notification – and this has large implications for how participation in the program is modeled. Day-ahead notification programs are modeled much like resource adequacy. The DER operator is given ample lead time to charge their storage systems and plan for the demand response event. This type of program is modeled by constraining the generation power of the DER mix to meet the terms of the demand response program. The other type, day of notification, gives the operator less time to prepare. As such, any participating storage systems need to be ready to fulfill their obligations at any time defined in the program. This type of program is modeled by constraining the state of energy of storage systems and power availability of all DERs to be ready for any possible demand response event, but never actually calling on the DER mix for power.



Tag Key Description
DR days The number of demand response events the DERs will be called on for in a year.


Tag Key Description
DR length The duration in hours of a single DR event.


Tag Key Description
DR weekend This input should be 1 when the program applies to weekends in addition to weekdays.

Program Start Hour

Tag Key Description
DR program_start_hour What is the first hour of the day the the program applies to? Hour 1 refers to the time from 00:00 - 01:00 and so on.

Program End Hour

Tag Key Description
DR program_end_hour What is the last hour of the day the DR program applies to? Hour 13 refers to the time from 12:00 - 13:00 and so on.

Day Ahead Notification

Tag Key Description
DR day_ahead Are program participants notified of an upcoming demand response event with enough time to prepare (e.g. charge a battery)? If so, this input should be 1. Otherwise this should be 0. When this is 0, all storage systems will maintain readiness for an unexpected DR event during all program hours, limiting their participation in other services.


Tag Key Description
DR growth This growth rate grows the DR Capacity Price ($/kW) and DR Energy Price ($/kWh) monthly inputs.

Optimization Details

There are two ways to define the window during which a demand response event could happen. The first is with a program start hour and its corresponding program end hour. The second is with a program start hour and a length. The length option will be used if program end hour is left empty. For day-ahead notification programs, DER-VET will find the system load peaks in the demand response window and for day-of notification programs, DER-VET will make sure the DER mix has enough power and energy capability to be ready for the entire DR window.

The demand response window is also sensitive to the “DR Months (y/n)” column in the monthly data input file. This column allows the user to turn off participation in demand response during some months of the year.

The value of demand response is calculated based on the power capacity committed to the program and the energy that ends up being delivered for demand response. In the day-of notification case, no energy is actually delivered for demand response, so no energy payment is assessed. In this case, the entire value should be captured by the capacity payment.