Technical and economical tools to assess customer demand response in the commercial sector

The authors present a methodology to evaluate and quantify the economic parameters (costs and benefits) attached to customer electricity consumption by analyzing the service provided by the different "pieces" of absorbed electricity. The first step of this methodology is to perform a process oriented market segmentation to identify segments according to their flexibility potential. After that, a procedure based on comprehensive simulations to identify and quantify the actual demand that can be managed in the short term is presented and, finally, the required economic analysis is performed. The methodology, which is demonstrated with some applications to the commercial sector, not only helps the customers to integrate in flexible distribution systems but also offers the necessary economical parameters for them to integrate in electricity markets. (C) 2009 Elsevier Ltd. All rights reserved.