Demand Response Participation in Capacity Market Pathway Reflections

This paper provides a thorough analysis of the participation path of Demand Response (DR) in the capacity market and related research. First, the article explains the fundamental idea of demand response and its various forms. Next, it examines the capacity market's function and mechanism of operation, highlighting its significance in maintaining the power system's economy and reliability. Finally, it discusses the real-world experience of demand response participation in capacity markets in the US and the UK. The study concludes that demand response, as a flexible incentive, can effectively increase power system reliability and lower overall operating costs. However, demand response participation in the capacity market still faces many challenges, including the implementation cost of demand response, the effectiveness of market price signals, the lack of policy support, and the complexity of the regulatory environment. In this regard, this paper presents several thoughts and suggestions for the construction of China's capacity market. Through these discussions, this paper aims to provide a reference for the design of mechanisms and policy formulation for future demand response participation in the capacity market, and to promote the effective utilization of renewable energy and the sustainable development of the power system.