Research

The School carries out applied research with the purpose of developing economically, legally, and socially-sound regulation and policy, using a multidisciplinary approach.

EU transport competitiveness

The European Union is entering a decade that will be decisive for its global competitiveness. This is particularly the case in the transport sector....

Authors
Elodie  Petrozziello JJMP
Article
Should I offset or should I plough? : voluntary carbon offsets and ETS in an evolutionary model
Discover more
Article
The regulatory framework for independent aggregators
Discover more

Executive Education

We offer different types of training: Online, Residential, Blended and Tailor-made courses in all levels of knowledge.

Policy Events

A wide range of events for open discussion and knowledge exchange. In Florence, Brussels, worldwide and online.

More

Discover more initiatives, broader research, and featured reports.

Energy Regulation Academy

The Energy Regulation Academy (EnRA) is a 3-year capacity-building initiative to help accelerate the energy transition in Europe.

Discover more
Working Paper

A bilevel model for voluntary demand-side flexibility in distribution grids

This paper explores the price setting of demand-side flexibility, modelled as consumers’ voluntary load reduction, in distribution grids. It develops a long-term equilibrium optimization model with a bi-level setting for voluntary demand-side flexibility. In the Upper Level (UL), the Distribution System Operator (DSO) maximizes welfare by deciding the level of network investments and setting the price for demand-side flexibility. The DSO also sets the distribution network tariff in order to recover the network investment and flexibility costs from the Lower Level (LL) consumers. LL’s active residential and commercial consumers react to network tariffs and to the price offered for their flexibility by investing in rooftop solar and batteries and offering a certain volume of demand-side flexibility when requested by the DSO. The passive residential consumers also provide flexibility by decreasing their load, but they do not invest in rooftop solar or batteries. We find that voluntary demand-side flexibility increases welfare and allows significant network investment savings. We also find that the benefits can reach all types of consumers. Besides, it is opportune to apply price differentiation when setting the price for demand-side flexibility, where applicable.

NOUICER, Athir; MEEUS, Leonardo; DELARUE, Erik, A bilevel model for voluntary demand-side flexibility in distribution grids - hdl.handle.net

Don’t miss any update on this topic

Sign up for free and access the latest publications and insights

Sign up
Back to top