U.S. Department of Energy - Energy Efficiency and Renewable Energy

Energy Analysis

Demand Response and Energy Storage Integration Study

This study is a multi-national laboratory effort to assess the potential value of demand response and energy storage to electricity systems with different penetration levels of variable renewable resources and to improve our understanding of associated markets and institutions. This study was originated, sponsored, and managed jointly by the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy and the Office of Electricity Delivery and Energy Reliability.

Grid modernization and technological advances are enabling resources, such as demand response and energy storage, to support a wider array of electric power system operations. Historically, thermal generators and hydropower in combination with transmission and distribution assets have been adequate to serve customer loads reliably and with sufficient power quality, even as variable renewable generation like wind and solar power become a larger part of the national energy supply. While demand response and energy storage can serve as alternatives or complements to traditional power system assets in some applications, their values are not entirely clear. This study seeks to address the extent to which demand response and energy storage can provide cost-effective benefits to the grid and to highlight institutions and market rules that facilitate their use.

Past Workshops

The project was initiated and informed by the results of two DOE workshops; one on energy storage and the other on demand response. The workshops were attended by members of the electric power industry, researchers, and policy makers; and the study design and goals reflect their contributions to the collective thinking of the project team.

Project Organization

The project is organized in three research areas: demand response resource assessment; power system modeling; and market and policy barriers to demand response and energy storage. A synthesis document integrates the findings from all of the individual technical reports.

Summary Report

O. Ma, N. Alkadi, D. Bhatnagar, P. Cappers, A. B. Currier, P. Denholm, J. Dudley, S. Goli, M. Hummon, J. Jorgenson, S. Kiliccote, J. MacDonald, N. Matson, D. Olsen, D. Palchak, C. Rose, M. D. Sohn, M. Starke, B. Kirby, and M. O'Malley, "Demand Response and Energy Storage Integration Study," [in development]

Grid Integration of Aggregated Demand Response, Part 2: Modeling Demand Response in a Production Cost Model- http://www.nrel.gov/docs/fy14osti/58492.pdf

Assessment of Industrial Load for Demand Response across U.S. Regions of the Western Interconnection- http://info.ornl.gov/sites/publications/Files/Pub45942.pdf

Demand Response Resource Assessment

D. Olsen, M. D. Sohn, N. Matson, J. Dudley, S. Goli, and S. Kiliccote, M. Hummon, P. Denholm, J. Jorgenson, D. Palchak, O. Ma "Grid Integration of Aggregated Demand Response, Part 1: Load Availability Profiles and Constraints for the Western Interconnection," LBNL-6417E, 2013

M. Starke, N, Alkadi, O. Ma, "Assessment of Industrial Load for Demand Response across U.S. Regions of the Western Interconnection," ORNL/TM-2013/407, 2013.

Power System Simulation

P. Denholm, J. Jorgenson, M. Hummon, T. Jenkin, B. Kirby, O. Ma, M. O'Malley, and D. Palchak, "The Value of Energy Storage for Grid Applications," NREL/TP-6A20-58465, 2013.

P. Denholm, J. Jorgenson, M. Hummon, D. Palchak, B. Kirby, O. Ma, M. O'Malley, "The Impact of Wind and Solar on the Value of Energy Storage," NREL/TP-6A20-60568.pdf

M. Hummon, P. Denholm, J. Jorgenson, and D. Palchak, "Fundamental Drivers of the Cost and Price of Operating Reserves", NREL/TP-6A20-58491, 2013.

M. Hummon, P. Denholm, J. Jorgenson, D. Palchak, O. Ma, D. Olsen, M. D. Sohn, N. Matson, J. Dudley, S. Goli, S. Kiliccote, "Grid Integration of Aggregated Demand Response, Part 2: Modeling Demand Response in a Production Cost Model," NREL/TP-6A20-68492, 2013.

Policy and Market Barriers

P. Cappers, J. MacDonald, and C. Goldman, "Market and Policy Barriers for Demand Response Providing Ancillary Services in U.S. Markets," LBNL-6155E, 2013.

D. Bhatnagar, A. B. Currier, J. Hernandez, O. Ma, B. Kirby, "Market and Policy Barriers for Energy Storage Deployment," SAND2013-4747, 2013.

Additional Reports

O. Ma, N. Alkadi, P. Cappers, P. Denholm, J. Dudley, S. Goli, M. Hummon, S. Kiliccote, J. MacDonald, N. Matson, D. Olsen, C. Rose, M. D. Sohn, M. Starke, B. Kirby, and M. O'Malley, "Demand Response for Ancillary Services," IEEE Transactions on Smart Grid, 4(4),2013. 

R. Sioshansi, S. H. Madaeni, and P. Denholm, "A Dynamic Programming Approach to Estimate the Capacity Value of Energy Storage," IEEE Transactions on Power Systems, 29(1), 2014.

Data and Tools

Coming soon.

For more information about the Demand Response and Energy Storage Integration Study, contact eere.analysis@ee.doe.gov.

Demand Response and Energy Storage Integration Study is a collaboration among the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy and Office of Electricity and Energy Reliability, Lawrence Berkeley National Laboratory, the National Renewable Energy Laboratory, Oak Ridge National Laboratory, and the Sandia National Laboratories.