Cutting through complexity: Coordinated demand response and future directions in global communication technologies

Abstract

The global electricity market is undergoing a transformative shift, envisioning a future resembling commodity trading platforms. Enabled by mature communication technologies, this evolution empowers energy consumers worldwide to actively engage in the energy market, negotiating arrangements for adjusting energy demand during grid stress and optimizing costs. In this era of technological advancements, this vision is materializing globally. Commercial and industrial entities are playing active roles in ancillary services markets, providing crucial grid support. Efforts are expanding to engage smaller users through third-party aggregators. However, many initiatives retain opt-in structures, limiting customer engagement. A promising solution is local energy markets, integrating modest flexibility reserves globally. This empowers small-scale users to choose services aligned with their preferences. This paper delves into the essential components facilitating the transition to globally applicable, aggregator-mediated demand-side management markets. Anchored in dynamic consumer engagement and nurtured by reciprocal information flows, this shift signals a fundamental reshaping of the global energy landscape. The paper introduces a universally adaptable demand response aggregation framework for energy enterprises to systematically devise consumer-centric programs. This framework serves as a foundational structure, fostering a strategic and flexible approach to meet evolving consumer preferences in demand response initiatives worldwide.