An economic effect of demand response with Thermal Storage Air-conditioning systems in electricity markets

This paper evaluates the economic effect of the Demand Response (DR) with Thermal Storage Air-conditioning (TSA) systems in electricity markets using market models based on the California Power Exchange (Cal-PX) and the Australian National Electricity Market (NEM). Our main objective is to evaluate the reductions in the Market Clearing Price (MCP) and wholesale purchase costs for all market participants by implementing the DR program. The DR program with TSA systems results in MCP reductions by shifting electricity demand for air-conditioning from on-peak to off-peak hours, and that economic benefit can be realized not only for the DR program owner but also for all purchasers in the electricity market. This paper also discusses the differences between the results obtained from the Cal-PX model and the NEM model.