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Simulation of a Local Energy System with Focus On Cost Efficient DSM Measures On a Deregulated Electricity Market

Introduction

As part of the ISES project (Information, Society, Energy, System), a project for introduction of IT-solutions in the Blekinge region, the analysis here is focused on the profitability of DSM in the energy system of Ronneby. Since the deregulation of the Swedish electricity market took place and competition occurred at the electricity market, many electricity sales companies try to bring so called "add values" to their product to make it even more attractive to the customers. One of those "extras" could be different IT services, as for example smart houses and load management. Through intelligent technology it would be possible for the electricity suppliers to communicate with different equipment at the customers and that way both reduce the customers' energy costs and increase their comfort. In the vision, the communication needed for these services, would mainly take place on the electricity grid. Today this is already possible in a smaller scale.

But as in all market driven societies, made investments have to pay and the analysis presented here has been made to elucidate the economical incentives, for or against demand side management in the Ronneby energy system.

The entire paper in PDF format.