Benefits Analysis of All Parties Participating in Demand Response

With the proposed of smart grid, the user´s role in power system is being re-recognized. In order to realize user´s role, many countries are implementing smart metering and demand response (DR). The investment of this system is so huge and the benefits of all parties participating in DR are not clear, all parties are not active to participate in it. In this paper, the problems of nonDR are listed. Then the basic premises of implementing DR are given. On this basis, the effects of DR are calculated quantitatively and analyzed qualitatively. Nowadays, Air-conditioning is one of main reasons which caused peak load. This peak load increases more cost to consumers, power companies and the whole society. According to the mathematical model of air-conditioning between temperature and power, the consumer saving cost of adjusting air-conditioning is calculated. At the same time, the benefits of power companies and society are analyzed qualitative. According to Europe and US pilot projects, the effects of DR are given. The results demonstrate that several million tons/year of coal are saved and thousands tons of CO₂ and SO₂ are reduced to emission. Finally, the barrier of implementation DR is analyzed. There will need opened electricity market, time-of-use or real-time price, advanced metering infrastructure (AMI), advanced communication and control system. Through the benefits analysis of all parties, we hope to promote the every aspect to invest in DR and speed up the process of DR and smart grid.