Heat Pump Optimization Strategies for Participation in Price-Controlled Demand Response in the Latvian Electricity Market

Improved end-user engagement is considered to be a key factor in decarbonization efforts towards climate neutral energy systems. While first adopters are already actively seeking ways how to optimize their energy consumption, a true shift in consumer behaviour can only be achieved if the financial benefits are well established and presented. The study aims at estimating the economic performance of end-user engagement in provision of demand response services using air-to-air heat pumps as the underlying technology. The results of the paper help evaluate in a real data setting whether the existing market framework provides sufficient incentives to facilitate end-user participation in the demand response service.