Value and Granularity of ICT and Smart Meter Data in Demand Response Systems

The large-scale integration of intermittent resources of power generation leads to unprecedented fluctuations on the supply side. An electricity retailer can tackle these challenges by pursuing strategies of flexible load shifting-so-called demand response mechanisms. This work addresses the associated trade-off between ICT deployment and economic benefits. The ICT design of a demand response system serves as the basis of a cost-value model, which incorporates all relevant cost components and compares them to the expected savings of an electricity retailer. Our analysis is based on a typical German electricity retailer to determine the optimal read-out frequency of smart meters. For our set of parameters, a positive information value of smart meter read-outs is achieved within an interval of 21 to 57 minutes regarding variable costs. Electricity retailers can achieve a profitable setting by restricting smart meter roll-out to large customers