Pricing Policy to Promote Demand Flexibility with Renewable Energy Resources in Jordan

Jordan aims to increase renewable energy sources (RES) contribution to electricity generation by up to 50% by 2030. However, achieving Jordan's future RES targets is challenged by the variability of RES which increases the need for a highly flexible power system. The flexibility represents the system's capacity to change the supply and/or the demand to balance them. Price-based demand response programs have the potential to provide flexibility to the grid and maximise RES utilization. This paper analyses the price-based demand response program's contribution to Jordan's sustainability targets. The paper proposes a price-based program of different pricing schemes and investigates its impacts on the grid. Results demonstrate that the proposed price-based program can provide up to 8% demand flexibility. The demand flexibility reflects the change in the demand profile compared with the baseline demand profile. With the induced flexibility, the program can help align the demand and the renewable supply available; thus, it contributes to improving system flexibility and minimising RES curtailment. Furthermore, the analysis underscores the necessity of considering investments in RES infrastructure to expand the power system's capacity.