Design of Demand Response programs in emerging countries

Abstract

Demand Response (DR) programs are not a new concept; moreover, the key technologies for their implementation are already successful. However, DR applications in a worldwide context have been slow, especially in the industrial and commercial sector. Despite this, emerging countries have great opportunities to internalize these policies in their energy planning and economic growth programs, so as to maximize their use as a tool integrated to energy markets. DR may allow to deal with the risks associated with system demand and to satisfy the reliability needs of an active and dynamic energy market. For this to take place, one should migrate to active and dynamic demand response, under reliability criteria based on the smart grid paradigm. This article formulates a new perspective of demand response in emerging countries, based on the US and European experience, with important programs, mechanisms and instruments of demand management and integration processes in smart grids. It reviews strategies, challenges and opportunities of incorporating demand response programs in emerging countries, with an emphasis on designs for Latin America.