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The Demand Flexibility Model serves as a simulation tool designed to evaluate the techno-economic feasibility of integrating demand flexibility within power systems. The model encompasses the simulation of the power system incorporating supply-side resources such as conventional generators, renewable energy (RE) generators, energy markets, and battery storage systems, alongside demand-side elements, which include both fixed and flexible demand.
Demand Flexibility (DF) is the ability to shift or adjust, with price signals, electricity consumption across different time periods without changing the total energy used. Electricity utilities create price singles to manage grid disturbances, transmission and distribution network congestion, absorb higher share of renewables in real-time and optimum utilisation of generation and transmission assets.
Move energy use to times when renewable energy is plentiful (e.g., run appliances during sunny hours).
Temporarily lower consumption during peak demand. (e.g.,use smart thermostat to slightly adjust AC/heating during peak hours)
Use smart devices and batteries to store energy for later use. (e.g., thermal storage for cold storage)
Demand flexibility helps integrate variable renewable energy (like solar and wind) into the grid by shifting when electricity is consumed. This reduces curtailment, lowers system costs, and improves reliability — while giving consumers incentives to participate in the clean-energy transition.
Shifts electricity use to align with variable solar and wind generation, ensuring more renewable power is absorbed instead of being curtailed.
Reduces peak demand, which lowers stress on the grid and reduces the need for expensive grid upgrades and energy storage.
Provides fast, flexible responses to manage the variability and intermittency of renewable generation.
Demand flexibility programs offer financial incentives to participants, allowing them to play an active role in the clean-energy transition while lowering their electricity bills.
Enables higher penetration of renewables, accelerating the transition to a low-carbon grid.
*The data is for the financial year 2023–24.*The boundaries and names shown and the designations usedon this map do not imply official endorsement or acceptance by the United Nations.
MP Ensystems Advisory Private Limited established in 2012, is a thesis-driven private consulting firm that actively supports equitable energy and resource efficiency initiatives. The firm’s core expertise lies in the energy and environmental sectors and includes electricity regulations, clean energy access for development, water resource efficiency and sustainable mobility.Our initiatives also encompass climate finance, aimed at catalysing sustainable change.
