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Shifting load through space–The economics of spatial demand side management using distributed data centers

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  • Fridgen, Gilbert
  • Keller, Robert
  • Thimmel, Markus
  • Wederhake, Lars
Abstract
Demand-side flexibility (DSF) in the electricity grid has become an active research area in recent years. While temporal flexibility (e.g. load shedding, load shifting) is already discussed intensively in literature, spatial load migration still is an under-researched type of DSF. Spatial load migration allows us to instantly migrate power-consuming activities among different locations. Data centers (DCs) are power-intensive and process information goods. Since information goods are easily transferable through communication networks, power-intensive processing of information goods is not necessarily tied to a specific location. Consequently, geographically distributed DCs inherit—in theory—a considerable potential to globally migrate load. We analyze the economics of spatially migrating load to provide balancing power using geographically distributed DCs. We assure that neither of the participating electricity grids will be burdened by this mechanism. By using historical data to evaluate our model, we find reasonable economic incentives to migrate positive as well as negative balancing power. In addition, we find that current scenarios favor the migration of negative balancing power. Our research thus reveals realistic opportunities to virtually transfer balancing power between different market areas worldwide.

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  • Fridgen, Gilbert & Keller, Robert & Thimmel, Markus & Wederhake, Lars, 2017. "Shifting load through space–The economics of spatial demand side management using distributed data centers," Energy Policy, Elsevier, vol. 109(C), pages 400-413.
    • Handle: RePEc:eee:enepol:v:109:y:2017:i:c:p:400-413
    DOI: 10.1016/j.enpol.2017.07.018
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    References listed on IDEAS

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    5. Gilbert Fridgen & Marc-Fabian Körner & Steffen Walters & Martin Weibelzahl, 2021. "Not All Doom and Gloom: How Energy-Intensive and Temporally Flexible Data Center Applications May Actually Promote Renewable Energy Sources," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 63(3), pages 243-256, June.
    6. Thimmel, Markus & Fridgen, Gilbert & Keller, Robert & Roevekamp, Patrick, 2019. "Compensating balancing demand by spatial load migration – The case of geographically distributed data centers," Energy Policy, Elsevier, vol. 132(C), pages 1130-1142.
    7. Robert Keller & Lukas Häfner & Thomas Sachs & Gilbert Fridgen, 2020. "Scheduling Flexible Demand in Cloud Computing Spot Markets," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(1), pages 25-39, February.
    8. Paul Schott & Johannes Sedlmeir & Nina Strobel & Thomas Weber & Gilbert Fridgen & Eberhard Abele, 2019. "A Generic Data Model for Describing Flexibility in Power Markets," Energies, MDPI, vol. 12(10), pages 1-29, May.
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    10. Leinauer, Christina & Schott, Paul & Fridgen, Gilbert & Keller, Robert & Ollig, Philipp & Weibelzahl, Martin, 2022. "Obstacles to demand response: Why industrial companies do not adapt their power consumption to volatile power generation," Energy Policy, Elsevier, vol. 165(C).

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