Full Title: Grid Integration of Aggregated Demand Response, Part 2: Modeling Demand Response in a Production Cost Model
Author(s): Marissa Hummon, David Palchak, Paul Denholm, and Jennie Jorgenson
Publisher(s): National Renewable Energy Laboratory
Publication Date: 12/2013

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Renewable integration studies have evaluated many challenges associated with deploying large amounts of variable wind and solar generation technologies. These studies can evaluate operational impacts associated with variable generation, benefits of improved wind and solar resource forecasting, and trade-offs between institutional changes, including increasing balancing area cooperation and technical changes such as installing new flexible generation. Demand response (DR) resources present a potentially important source of grid flexibility and can aid in integrating variable generation; however, integration analyses have not yet incorporated these resources explicitly into grid simulation models as part of a standard toolkit for resource planners.

This report (Part 2) implements DR resources in the commercial production cost model PLEXOS. Production cost models are utility planning tools commonly used in renewable integration analyses because they can mimic many of the near real-time decisions and conditions faced by power system operators. Further, they output a number of useful metrics, such as estimates of different types of operational costs and power plant emissions.