On the Impact of Demand Response in the Nordic Power System

Demand response may provide substantial flexibility to operation of future power systems. In this paper we focus on the capability to shift load across time steps, and formulate a set of linear constraints suitable for representing this capability in a power market model. The formulation is tested in a large-scale case study for a scenario of the future Northern-European power system. The results demonstrate the impact of load shifting on power price formation and capture prices for hydro-, wind- and solar power producers in the Nordic market.