Greener on the Other Side: Assessing the Economic and Emissions Impacts of Demand-Side Technologies in Electricity Grids
Date
2020-01
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Abstract
The long-term goals of energy transitions are clear: to provide a secure, consistent, and cost-effective power supply that is sustainable with low Greenhouse Gas emissions. However, energy transitions around the world focus more simply on an increase in renewable energy and decrease in fossil fuel use. This focus on the generation side alone misses a key opportunity in the electricity system, demand-side technologies. Demand-side technologies are those capable of making controlled and deliberate changes to demand within the system. This thesis provides two case studies investigating demand-side technologies, firstly from the grid perspective and secondly from the perspective of a demand operator. Grid scale impacts were explored in terms of marginal changes in the merit order, where fluctuation in supply and demand are accounted for by dispatching generators. Generators in the merit order were found to be far less organized by fuel-type than previously suggested in the literature. As a result, calculating emissions based on the marginal generator provided unreliable numbers. The economic case for demand side technologies in current grids shows potential, as a small reduction in demand across key hours had a major impact on the yearly cost of the grid. On the operator side, demand-shifting technologies, solar PV, and a combination of solar with storage were compared based on their ability to achieve operational cost savings in different electricity grids. Grid price trends had a major impact on which technologies are most beneficial, with certain pricing patterns benefitting each technology differently. Allowing consumers access to grid wholesale prices, as well as providing pricing signals, would allow users to make informed decisions on what technology is best to invest in. Together, the two studies show a clear case for the benefits of adopting demand-shifting technologies. Significant savings are available to the grid at large, as well as to the individual operator. During the energy transition, balancing the adoption of renewables with demand-shifting measures will be valuable in ensuring price and grid stability.
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Keywords
Electricity Systems, Renewable Energy, Demand Side Management, Electricity Price, Marginal Emissions Factor, Electricity Storage, Demand Shifting
Citation
Tierney, M. W. (2020). Greener on the Other Side: Assessing the Economic and Emissions Impacts of Demand-Side Technologies in Electricity Grids (Master's thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca.