A More Renewable-Friendly Electrical Grid: Thermal Storage Refrigeration for Demand Response in California and Denmark

Kurt Kornbluth, John Cook, Paul Erickson

Agriculture and Resource Economics, University of California, Davis, USA.
Department of Mechanical Engineering, University of California, Davis, USA.
Program for International Energy Technologies, University of California, Davis, USA.

DOI: 10.4236/sgre.2012.34042                

Abstract

Energy storage technologies, which enable demand response, are being explored throughout the world as a component of strategies for switching to renewable intermittent energy sources and reducing peak loads. This study examines thermal storage refrigeration (TSR) technology as a case study for the potential value of demand response in California and Denmark. Using technical specifications from a TSR prototype developed at UC Davis and market data from California and Denmark, the analysis examines possible business models for the TSR refrigerators and highlights market characteristics that are important to its adoption. Results suggest that the TSR technology is not a viable option in the current market environment in Denmark, but could payback in less than 6 years in California if a part of a demand response based virtual power plant. In a hypothetical future scenario involving real-time pricing in the retail market, a high degree of price volatility would be needed to make TSR technology appealing to residential consumers. Based on this analysis, an interesting area of future work would focus on the market potential of TSR technology for commercial and industrial applications.

Keywords

Refrigeration; Demand-Response; Thermal Storage; Wind Energy; California; Denmark; Electricity; Grid

Conflicts of Interest

The authors declare no conflicts of interest.

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