MSc Thesis: Inciting Residential Demand Side Participation in Electricity Markets: Three Elasticity Issues That Stand in the Way
Sam Denison Bailly successfully defends his master’s thesis
REYKJAVIK, May 14 - On the 2nd of May, MSc of Sustainable Energy Science student at ISE, Sam Denison Bailly successfully defended his master thesis project, in which he explored and identified three elasticity issues that hinder residential demand side participation in electricity markets. Sam was supervised by Ewa Lazarczyk Carlson from Reykjavik University. Magni Þ.Pálsson, who works as a Specialist in Power System Analysis in Landsnet, Icelandic transmission system operator, was appointed as examiner.
According to Sam, demand side participation and distributed energy resources (DERs) in the electricity market is essential to smart grid adoption. However, this mean that consumers need to be elastic to wholesale prices, which can vary by time and depending on location. In his thesis, Sam identified three factors that hinder consumer price elasticity.
First, consumers are not are not given the opportunity to respond to changes in price. Second, consumers are not able to respond to price changes rapidly, especially to ever-changing prices. Third, there is a lack of willingness for consumers to be price responsive. So, how do we address these issues?
In Sam’s study, he discussed that consumers would need to be exposed to wholesale market conditions, be equipped with the appropriate technology to conveniently respond to price changes, as well as other interventions that would make the process as smooth as possible. One of the solutions that Sam proposed is a policy that require distributor to adjust the default retail rate to one that is dynamic and value based. The outcome of Sam’s research would be essential in informing decision-makers on the issues that inhibit demand side participation in the electricity market and the efficient ways that could potentially solve these issues. To read more about his work, click on the following link .
Congratulations Sam on an excellent thesis!