Techno-economic analysis of demand response

This chapter discusses general approaches for conducting a techno-economic analysis of demand response (DR) concepts and developing relevant business cases. The first section presents the general context of DR, relevant for such an analysis, and introduces the underlying complexities for properly assessing the techno-economic feasibility of DR services. The second section enters into more detail on the technical and economic dimensions of DR, the relevance of a multi-actor approach for the analysis, as well as the consequences of the interactions between different stakeholders for assessing potential DR business cases. Finally, the chapter discusses the categorization of potential DR business cases, and presents the guidelines for performing a techno-economic analysis based on concrete examples of DR business case analyses within the ADDRESS project.