OIES Podcast – Incorporating Consumer Reliability Preferences in the Electricity Markets
In this podcast, David Ledesma talks to Frank Felder about how Incorporating Consumer Reliability and permitting customers to adjust their electricity consumption, based on system condition, can reduce costs and improve system reliability. Power outages and major blackouts are widespread, affecting hundreds of millions globally. There are concerns about the reliability of the electric power system and the associated challenges that variable and intermittent renewables introduce. One way to improve reliability and reduce costs is to have more customers adjust their electricity consumption based on system conditions, but demand response has been slow to develop. A market-based way for consumers to do so may help, combined with technological advances in smart meters and load control devices. The critical insight that this research explores is how to incorporate different customer reliability preferences consistent with current reliability policies and market mechanisms.