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Provision of demand response by French prosumers with photovoltaic-battery systems in multiple markets

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Abstract

Residential prosumers with photovoltaic and battery storage systems (BSS) can optimize the return on their investment in two main ways, increasing self-consumption and providing demand response (DR) to various electricity markets. In this paper, we investigate the potential benefits for French prosumers from providing DR to the capacity market and to a specific DR market, the Notifications d’Echange de Blocs d’Effacement (Demand Response Block Exchange Notifications–NEBEF). An optimization model is developed which would allow the prosumer to bid in the two markets. We consider the uncertainty affecting consumption and three retail rates. We also assess the impact of a compensation scheme for a balance-responsible party when DR is activated inside their balancing area. We show that DR volumes can represent about 20% of self-consumption but this falls to 6% due to uncertainty and payments compensating the supplier. Overall savings from self-consumption and the yield from DR are too low in France to cover the cost of investing in a BSS. A DR premium from 18.7 to 62 cts€/kWh is needed to reach the BSS break-even point. These numbers drop when considering time-of-use tariffs compared to a flat retail rate.

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Notes

  1. The German Renewable Energy Sources Act.

  2. Notifications d’Echange de Blocs d’Effacement/Demand Response Block Exchange Notifications.

  3. For sake of simplicity, we often call these two markets the “DR markets” in the following.

  4. A demand response provider (DRP) in our analysis can be a prosumer, an aggregator or a dedicated demand response provider. In the following of the article, DRP will mainly stand for a prosumer but our analysis stays relevant for the two other stakeholders, too.

  5. https://www.services-rte.com/en/learn-more-about-our-services/nebef-compensation-payment.html.

  6. In our analysis, when spot prices are lower than the compensation fee, the DRP does not make bids on the DR markets. The study of several incentives to compensate these losses are beyond the scope of our analysis.

  7. The same profiles were used in this study.

  8. https://www.renewables.ninja/.

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Author information

Authors and Affiliations

  1. University of Grenoble-Alpes, CNRS, INRAE, Grenoble-INP, GAEL, CS 40700, 38058, Grenoble Cedex 9, France

    Cédric Clastres & Olivier Rebenaque

  2. Climate Economics Chair, Palais Brongniart, 28 Place de la Bourse, 75002, Paris, France

    Olivier Rebenaque

  3. Department of Energy Systems Analysis, Institute of Networked Energy Systems, German Aerospace Center (DLR), Curiestr. 4, 70563, Stuttgart, Germany

    Patrick Jochem

Authors
  1. Cédric Clastres
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  2. Olivier Rebenaque
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  3. Patrick Jochem
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Corresponding author

Correspondence to Olivier Rebenaque.

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Appendices

Appendix 1: Partition of the all the observations at 8 pm for every Monday in winter

figure a

The graph displays the observations (consumption) for every Monday in Winter at 8 pm. The level of consumption is different from a winter Monday to another. So, the uncertainty for bidding is prominent. However, the clustering method applied allows us to distinguish three different levels: S1 for low consumption, S2 for medium consumption and S3 for high consumption. The cluster k is calculated such as the squared distances between a point x of cluster Si and its mean are minimized (see Sect. 5 and [19]). Then, the probability of each scenario (π in Eq. 9) is the sum of the observations for a given cluster over the total observations.

Appendix 2: Share of DR volumes in consumption and self-consumption (%)—flat rate

Prosumers

CH05

CH45

Scenarios

% of consumption

% of self-consumption

% of consumption

% of self-consumption

High_DR_Det

11

20

12

18

High_DR_Stoch

8

14

8

12

Low_DR_Det

7

13

8

11

Low_DR_Stoch

4

7

4

6

Appendix 3: Participation (in % of hours with notifications) of prosumers in DR markets

Prosumers

CH05

CH45

DR markets/scenarios

NEBEF

Capacity

NEBEF

Capacity

High_DR_Det

79

92

83

94

High_DR_Stoch

88

99

88

99

Low_DR_Det

39

90

41

94

Low_DR_Stoch

43

99

46

100

Appendix 4: Values (€) and variation (%) in DR revenues for the high scenarios with TOU

 

Time-of-use two periods

Time-of-use four periods

CH05

CH45

CH05

CH45

High_DR_Det

− 4.7%

− 5.4%

− 3.8%

− 4.8%

High_DR_Stoch

− 5.2%

− 8.5%

− 4.7%

− 8%

High_DR_Det

€284

€304

€287

€305

High_DR_Stoch

€231

€232

€232

€233

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Clastres, C., Rebenaque, O. & Jochem, P. Provision of demand response by French prosumers with photovoltaic-battery systems in multiple markets. Energy Syst 14, 869–892 (2023). https://doi.org/10.1007/s12667-021-00482-4

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  • DOI: https://doi.org/10.1007/s12667-021-00482-4

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