Abstract
The flexible use of energy is seen as a key option to facilitate the integration of volatile renewable energy sources (RES) into the electricity sector. In this study, we focus on flexibility in the service sector, in terms of flexible technologies, experiences and willingness to participate in demand response (DR) actions. We analyse the technically possible future deployment of flexibility, the practically possible deployment of flexibility and also take the reduction of RES surplus electricity into account. Our results are based on survey data from over 1.500 service sector companies (offices, trade, hospitality) and modelling results with a time resolved DR model (eLOAD). The data show that service sector companies have few experiences in DR so far, which is among others caused by the unfavourable regulatory conditions to participate in flexibility markets. The currently most common forms of DR are load shedding and flexible tariffs and optimized purchase of electricity. Participation in DR varies between subsectors and company sizes, but on average all subsectors are interested in extending (automated) DR measures in the future. Our projections result in a possible technical deployment of flexible electricity of 7.74 TWh of which about 510 GWh can be used to reduce renewable surplus electricity (in case of a 50% RES share). In case of a 80% RES share, this can reach 1.63 TWh. Integrating the willingness of companies to participate in DR, the practical possible deployment results in 131 GWh reduction of renewable surplus electricity. This can be interpreted as a first-mover potential for DR. Future increased need for flexible demand could raise the profit for the companies and their willingness in participating in DR. Further analyses on most promising target groups of companies would help to tap the potentials and to create market offers as well as policies to incentivise participation.
Original language | English |
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Article number | 100460 |
Number of pages | 11 |
Journal | Energy Strategy Reviews |
Volume | 28 |
DOIs | |
Publication status | Published - 2020 |
Funding
The data assessment was financially supported by the German Federal Ministry for Economic Affairs and Energy within the context of the projects “Flexible Nachfrage als wichtiger Beitrag zur Energiewende und Baustein in der Energiesystemanalyse” (flexible demand as an important contribution to the energy transition and a building block of energy system analysis) and “Analyse der Versorgungssicherheit in Süddeutschland unter Berücksichtigung der europaweiten Kopplung der Strommärkte" (analysis of supply security in Southern Germany taking into account the Europe-wide coupling of electricity markets) in the 6th Energieforschungsprogramm. The method was developed within the EU project REFLEX (Analysis of the European energy system under the aspects of flexibility and technological progress), which received funding from the European Union's Horizon 2020 research and innovation programme [GA-No. 691685]. For further information, see: http://reflex-project.eu/ The authors would like to thank the anonymous reviewers for their helpful comments and effort towards improving our manuscript.
Keywords
- Demand response potential
- Demand side flexibility
- DSM
- Flexibility deployment
- Modelling
- Service sector
- Survey data