Åsa Grytli Tveten, Torjus Folsland Bolkesjø and Iliana Ilieva: Increased demand-side flexibility: market effects and impacts on variable renewable energy integration, International Journal of Sustainable Energy Planning and Management Vol. 11 2016 33-50

This paper investigates the effect of increased demand-side flexibility (DSF) on integration and market value of variable renewable energy sources (VRE). Using assumed potentials, systemoptimal within-day shifts in demand are investigated for the Northern European power markets in 2030, applying a comprehensive partial equilibrium model with high temporal and spatial resolution. Increased DSF is found to cause only a minor (less than 3%) reduction in consumers’ cost of electricity. VRE revenues are found to increase (up to 5% and 2% for wind and solar power, respectively), and total VRE curtailment decreases by up to 7.2 TWh. Increased DSF causes only limited reductions in GHG emissions. The emission reduction is, however, sensitive to underlying assumptions. The study shows that increased DSF has the potential of improving intergration of VRE. However, low consumers’ savings imply that policies stimulating DSF will be needed to fully use the potential benefits of DSF for VRE integration.