Summary: Although a substantial amount of demand response resides in the residential sector, the mobilization of residential demand response has fallen short of expectations. The participation of residential flexibility in wholesale electricity markets can have a disruptive impact on the industry. Inspired by our collaboration with MIT start-up Zome, we analyze the long-run impact of residential demand response on the profitability of various technologies through long-run equilibrium models of electricity markets.
Read more: Papalexopoulos, Alex, Jacob Beal, and Steven Florek. "Precise Mass-Market Energy Demand Management through Stochastic Distributed Computing." IEEE Transactions on Smart Grid, vol. 4, no. 4, pp. 2017-2027, 2013.