In this research, a simulation model is proposed to study the impact of consumer response rate on capacity and production planning. Different generation technologies such as base-load generation technologies and intermittent renewable energy technologies are considered. The simulation results show that the impact of DR depends on market price, the degree of demand elasticity, and the marginal cost of generation. As the rate of consumer response increases, investment in peak generation capacity becomes economically infeasible.
- Demand response
- Electricity generation
- Renewable energy
ASJC Scopus subject areas
- Business and International Management
- Energy (miscellaneous)
- Management of Technology and Innovation