District Heating as Demand Response Aggregator: Estimation of the Flexible Potential in the Italian Peninsula

Abstract

The liberalization of the gas market has deeply affected the structure of the gas system. The change from a vertically integrated utility structure to a liberalized architecture has resulted in a new network asset where aggregators could play a key role. To enable aggregators’ functionalities, the gas system has moved to a smart configuration. The development of this Advanced Metering Infrastructure (AMI) allowing a two-way communication between the utility and the consumers, together with demand response programs, prove to be an advantageous solution. Utilities are allowed to manage consumers’ gas load by asking them to reduce or shift their gas usage so that rebates or back payments could be available for consumers. In this framework, aimed at ensuring the feasibility of the gas system and promoting the aggregation of small gas loads, a new agent has been identified. In this research, the potential of district heating systems as gas market aggregators, together with a novel architecture for the gas network system has been identified. Furthermore, DR benefits in natural gas systems have been assessed with a focus on the Italian peninsula, where the authors have already carried out a previous analysis in this regard.

Keywords

• demand response
• district heating
• aggregator
• Italy
• natural gas
• smart metering