Demand response approaches in a research project versus a real business

Abstract

Demand response through Demand Aggregation is part of the energy transition towards a green and distributed system. Although the market is open in most European countries, its practical implementation is not much successful yet. In the last decade, research presented different options to deal with demand response and aggregation. This paper compares the benefits and limitations of strategies implemented from a research perspective and the strategy followed by a recently created company to see which of the advances in research are currently useful from a business perspective. The study presents a novel decision matrix to evaluate demand response strategies. Results show that there are technical limitations in current Energy Management Systems that need to be taken into account when developing demand aggregation platforms. In addition, the study highlights the importance to propose a simple and scalable solution to allow consumers to participate actively in electricity markets and create a success business model.