Assessment of Demand Response Market Potential and Benefits in Shanghai

The electricity systems in China are changing. The need for large-scale integration of intermittent renewables and penetration of electric vehicles, as implied by the low-carbon energy transition, poses challenges to system operation and network management. Moreover, the ever-increasing electricity consumption and peak demand, and the emerging policy objectives of reducing environmental impacts and improving economic efficiency, underline the urgency to change the way electricity systems are operated and planned in China. There is a growing interest, particularly from high-level policy makers, to explore the potential for demand side resources to contribute to the supply-demand balance and to meet the key objectives of carbon emission reduction, environmental protection and economic efficiency.