Economic Feasibility of Implementation of Load Curtailment and Critical Peak Pricing Schemes as Demand Response Programs to Network Consumption Management (Case study: Azerbaijan Regional Electrical Company)
With increased energy consumption, the need to find new ways and methods to supply electricity has become more pressing than ever, and the feasibility of growing generation capacity in the power system is limited due to some economic, political, and environmental constraints. As a result, in recent years, demand optimization has been studied, with an emphasis on the use of programs such as demand response programs. In this study, a proposed approach for assessing the real option of demand response programs for electric companies is offered to supply the best possible electricity to consumers. The typical load profile of the industrial pilot introduced by the Azerbaijan Regional Electrical Company, as well as the energy pricing in the electrical market, are analyzed, and the parameters needed to value the option of demand response programs are extracted before calculating the option value of the plans.
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