Techno-Economic Assessment of Business Cases for Multi-Energy Demand Response

  • Nicholas Chapman

Student thesis: Master of Philosophy


Renewable electricity generation and the electrification of heating and transport are complementary strategies to address environmental, economic and political challenges associated with fossil fuels. However, both these approaches can have negative impacts on the secure and efficient planning and operation of the electrical power system. Examples of such challenges include the need for enhanced reserves to balance variable renewable energy sources (VRES) and investment in new network and generation capacity to meet peak demand. Demand Response (DR) using domestic Electric Heat Pumps (EHP) has received increasing attention as a possible solution to tackle the above challenges. However, there remains much uncertainty regarding the business case for this type of DR. Quantifying the flexibility that domestic consumers can provide, along with the value that this flexibility can generate, are key obstacles to business case assessment. Further, DR is expected to lead to greater complexity in the energy system’s commercial architecture, involving new actors, such as Aggregators and Energy Service Companies (ESCOs), as well as novel contractual arrangements, like dynamic energy pricing and Energy Performance Contracting (EPC). This added complexity presents difficulty when it comes to understanding how the benefits (and potential negative impacts) of DR are allocated between different actors in the power system. Further, the physical effects of DR from domestic energy users can have negative consequences such as loss of thermal comfort and energy payback, both of which need to be well understood. This thesis presents a literature review on the technical and commercial aspects of DR at the domestic level, a description of a cost-benefit analysis model that has been implemented to address commercial complexity, and outcomes from modelling a cluster of 100 domestic EHPs to explore DR capacity and the impacts on energy payback and dwelling comfort loss.
Date of Award31 Dec 2017
Original languageEnglish
Awarding Institution
  • The University of Manchester
SupervisorPierluigi Mancarella (Supervisor) & Luis(Nando) Ochoa (Supervisor)


  • Building Energy
  • Energy Markets
  • Demand Response
  • Smart Grid
  • Power Engineering

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