Analysis of demand response and wind integration in Germany's electricity market

Demand response represents an additional option for reserve capacity as first market experiences have demonstrated. An analysis for Germany shows capacities up to 3 GW and costs starting at 30 euro/MWh in the industrial sector, 8 GW in the commercial sector and more than 20 GW in the residential sector including night storage heating. Simulations of the German power system showed that using these potentials together with improved wind power predictions can limit the additional balancing costs in Germany to below 2 euro/MWh feed-in by wind turbines with 48 GW wind power in 2020.