Assessment of Demand Flexibility Potential of Residential Consumers in Pakistan

Demand flexibility (or demand-side flexibility) can prove beneficial in both normal and emergency operation of power distribution system; in normal conditions, it could play vital role in avoiding the power contract violation penalties and in reducing the energy cost due to high energy demand during peak hours. In emergency conditions, it has the advantage of quick response to balance the mismatch between energy generation and demand. Moreover, it is imperative to assess the demand flexibility potential of residential consumers since residential demand makes up the major portion of the total electric demand, and it is available 24/7 for participation in demand response (DR) programs. This paper investigates the demand flexibility potential of Pakistani residential sector for peak demand reduction and presents the monetary benefits of different DR modes to individual residential consumers. Monte Carlo Simulations (MCS) were used to calculate the demand flexibility potential of selected household appliances for summer and winter seasons. At the end of this study, a detailed comparison of reduction in peak demand and average demand, as a result of applying different DR modes, is presented. Economic valuation of DR actions suggests that individual residential consumers can achieve reasonable annual savings by properly utilizing the demand flexibility potential of selected household appliances.