Aggregated Demand Response to alleviate national congestion in the Dutch power system

The increase of electricity generation by Renewable Energy Sources is desired in the next decade to achieve the European 2020 targets. Wind is considered to have the largest potential in achieving these targets. Taking into account the development of wind parks in the North Sea congestion is expected to increase in the Dutch electricity grid. This paper investigates the value of the application of Demand Response to alleviate national grid congestion. A model is used to simulate network flows based on the 2020 generation portfolio. In terms of model outcome three values are introduced the expected congestion, the market share and DR potential of different sectors compared to the congestion, and the social cost of congestion. The simulation illustrated that congestion occurred around the North-Holland area. When considering the Dutch electricity sector, the application of Demand Response to the alleviate congestion, presents significant value for the Transmission System Operator, electricity suppliers and end users. The paper concludes with recommendations for the design of a potential Demand Response program for congestion.

Subject

valuation
demand response
congestion management
quantitative modelling

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master thesis

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