On the value and potential of demand response in the Smart island archipelago

Marko Mimica*, Dominik Franjo Dominković, Tomislav Capuder, Goran Krajačić

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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Existing studies propose different demand response models and often test them on islands that represent test-beds for new technologies. However, proposed models are often simplified and integrated into energy system models that do not consider the existing limitations of the power grid. This study proposes a novel demand response model based on price differentials on the day-ahead electricity market. The model is implemented in the distribution system that considers all relevant grid constraints. The case study is conducted in an archipelago characterised by a medium-voltage distribution system connected to the mainland grid. The obtained results showed that the implementation of the proposed demand response model caused a 0.13 kV voltage deviation which did not cause voltage issues for the observed distribution system. The breakpoint incentive was achieved for an incentive value of 23% of the day-ahead market, and the demand response was not activated for higher values than the breakpoint incentive. The highest savings amounted to 258.7 € for the scenario with the highest flexibility allowed. The results implicate that implementing the demand response model in the grid would benefit all observed stakeholders in the system.

Original languageEnglish
JournalRenewable Energy
Pages (from-to)153-168
Publication statusPublished - 2021


  • Smart islands
  • Demand response
  • Renewable energy sources
  • Energy system analysis
  • Energy flexibility
  • Integrated energy system


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