Impact of the Demand Side Management in the Planning and Operations Towards 2050

In this work, we propose planning and operating models considering the uncertainty involved in the decision-making processes to: first, determine the investment decisions in generation and storage capacity to be made until 2050 to attain the CO2 emission targets in Europe, and second, analyze the market outcomes of the resulting power system. The capacity expansion model is formulated as a two-stage stochastic problem in which investment decisions in generation and storage capacity are made in the first stage considering the uncertainty related to the demand growth and the system operation represented in the second stage. A constraint of the CO2 emission limit is included and the influence of the level of demand side management (DSM) over the investment decisions is investigated. Moreover, the operation of the resulting European power system is analyzed by solving a two-stage stochastic problem whose first stage represents the day-ahead scheduling of the energy and reserve needs and second stage represents the real-time operation. In this model, the uncertainty related to the demand level and the available solar and wind power is considered. Consumers, generating and storage units can provide reserve capacity services. In the case study, the technical and economic operation of the European power system of 2050 is analyzed through a case study defined with historical data provided by ENTSO-E and the European Commission. The main conclusion obtained is that the DSM level has a low impact on the capacity to be built in renewable-dominated power systems if a significant storage capacity is available.