Targeted demand response for mitigating price volatility and enhancing grid reliability in synthetic Texas electricity markets.

Demand response (DR) is rapidly gaining attention as a solution to enhance the grid reliability with deep renewable energy penetration. Although studies have demonstrated the benefits of DR in mitigating price volatility, there is limited work considering the choice of locations for DR for maximal impact. We reveal that very small load reductions at a handful of targeted locations can lead to a significant decrease in price volatility and grid congestion levels based on a synthetic Texas grid model.