Research on Cost and Benefit of Demand Response Related Entities Based on System Dynamics

Abstract

Studying the cost-benefit of demand response is helpful for participants to understand their own input and benefit. The system dynamics method provides a more systematic, dynamic, and clear causal feedback solution for the cost-benefit analysis of demand response. Based on the analysis of the cost-benefit sources of demand response related entities, this paper applies the system dynamics method to the cost-benefit model of demand response, and verifies the rationality and effectiveness of the model through simulation examples, which provides theoretical reference value for the further development of demand response resources.