August 1, 2023
Conference Paper

Large-Scale Simulation of Regional Demand Flexibility Implementation and Customer Economic Impact

Abstract

The Distribution System Operator with Transactive (DSO+T) study conducted a large-scale simulation of over 60,000 customers in a region the size of Texas to demonstrate the effective coordination of distributed energy resources (DERs) in commercial and residential buildings. The integrated simulation included both the bulk (wholesale generation and transmission) and distribution systems. The DERs (including batteries, electric vehicles, air conditioning, and water heaters) participated in a transactive energy retail market that was integrated into an existing competitive wholesale market. The engineering and economic performance of the resulting demand flexibility was evaluated over annual simulations for both moderate and high renewable generation scenarios. A detailed parametric cost model was developed to enable detailed economic analysis of key stakeholders. In addition, fixed and dynamic customer tariffs were designed and applied to the customer population. This allowed the impact on annual customer bills to be analyzed for various building types (residential versus commercial; single- versus multi-family). This paper presents results showing the relative flexibility of batteries, electric vehicles, and building loads throughout the year and under different renewable scenarios. This feeds a detailed breakdown of the impact this flexibility has on the operating costs of the grid and the resulting net economic benefit. Finally, the study showed that practically all customer classes (including non-participating customers) save money under the proposed demand flexibility scheme. The study found overall net annual economic savings of $3.3-5.0B for a region the size of Texas equating to average customer bill savings of 10-16%.

Published: August 1, 2023

Citation

Reeve H.M., S.E. Widergren, R.G. Pratt, T.D. Hardy, S.R. Bender, S. Hanif, and M.A. Pelton, et al. 2022. Large-Scale Simulation of Regional Demand Flexibility Implementation and Customer Economic Impact. In 2022 ACEEE Summer Study on Energy Efficiency in Buildings, August 21-26, 2022, Pacific Grove, CA, 12-320- 12-335. Washington, District Of Columbia:American Council for an Energy-Efficient Economy. PNNL-SA-171206.