Potentials and Economics of Residential Thermal Loads Providing Regulation Reserve

TL;DR

This paper evaluates the capacity and economic viability of residential thermostatically controlled loads, like ACs and water heaters, to provide regulation reserve, showing they are sufficient and potentially more cost-effective than other storage options.

Contribution

It provides a comprehensive analysis of the resource potential, economic benefits, and policy considerations for using TCLs as regulation reserves in California.

Findings

TCLs can meet California's regulation reserve needs.

TCLs are more cost-effective than other energy storage technologies.

Policy and participation incentives are crucial for deployment.

Abstract

Residential Thermostatically Controlled Loads (TCLs) such as Air Conditioners (ACs), heat pumps, water heaters, and refrigerators have an enormous thermal storage potential for providing regulation reserve to the grid. In this paper, we study the potential resource and economic analysis of TCLs providing frequency regulation service. In particular, we show that the potential resource of TCLs in California is more than enough for both current and predicted near-future regulation requirements for the California power system. Moreover, we estimate the cost and revenue of TCLs, discuss the qualification requirements, recommended policy changes, and participation incentive methods, and compare TCLs with other energy storage technologies. We show that TCLs are potentially more cost-effective than other energy storage technologies such as flywheels, Li-ion, advanced lead acid, and Zinc Bromide batteries.