Demand Response Obligations: A New Regulatory Tool

Rohit Bhakar, Sumanth Yamujala, Ashita Singh, Chandra Prakash Barala

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

Considering the monopolistic and oligopolistic nature of power supply systems, regulation as a means to control utility behavior and attain policy targets is well accepted. The policy goals of high renewable penetration have been fulfilled through the widely adopted regulatory mechanism called Renewable Purchase Obligation. Higher renewable penetration brings in challenges of supply-demand balance and increased need for grid flexibility. Demand Response (DR) has been identified as a potential source to mitigate these challenges. Despite that various DR programs have been offered by the distribution utilities across the world, they could not gain significant traction due to a variety of technical, economic, and social reasons. To encourage consumer participation in DR programs, this paper proposes a novel contract-based regulatory tool, Demand Response Obligation (DRO) for the distribution utilities. Progressively increasing DR obligations for utilities are supposed to be secured by incentivizing consumers. The paper identifies pathways to assess current and potential DR deployment, identify customer segments with a potential for providing DR, and develop strategies to improve customer engagement. Further, it explores the need for compliance and monitoring mechanisms, and smart infrastructure in the context of DRO.
Original languageEnglish
Title of host publicationProceedings of 2024 IEEE Power & Energy Society General Meeting (PESGM)
Number of pages5
PublisherIEEE
Publication date2024
ISBN (Electronic)979-8-3503-8183-2
DOIs
Publication statusPublished - 2024
Event2024 IEEE Power & Energy Society General Meeting - Seattle, United States
Duration: 21 Jul 202425 Jul 2024

Conference

Conference2024 IEEE Power & Energy Society General Meeting
Country/TerritoryUnited States
CitySeattle
Period21/07/202425/07/2024
SeriesIeee Power and Energy Society General Meeting
ISSN1944-9933

Keywords

  • Demand response obligations
  • Demand response programs
  • Demand response certificates
  • Regulations

Fingerprint

Dive into the research topics of 'Demand Response Obligations: A New Regulatory Tool'. Together they form a unique fingerprint.

Cite this