Estimating Large-Customer Demand Response Market Potential: Integrating Price and Customer Behavior
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Estimating Large-Customer Demand Response Market Potential: Integrating Price and Customer Behavior

  • Author(s): Goldman, Charles
  • Hopper, Nicole
  • Bharvirkar, Ranjit
  • Neenan, Bernie
  • Cappers, Peter
  • et al.
Abstract

ABSTRACT=Demand response (DR) is increasingly recognized as an essential ingredient to well-functioning electricity markets. DR market potential studies can answer questions about the amount of DR available in a given area, from which market segments. Several recent DR market potential studies have been conducted, most adapting techniques used to estimate energy-efficiency (EE) potential. In this scoping study, we: reviewed and categorized seven recent DR market potential studies; recommended a methodology for estimating DR market potential for large, non-residential utility customers that uses price elasticities to account for behavior and prices; compiled participation rates and elasticity values from six DR options offered to large customers in recent years, and demonstrated our recommended methodology with large customer market potential scenarios at an illustrative Northeastern utility. We recommend an elasticity approach for large-customer DR options that rely on custo!

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