I disagree in part with the authors. I believe that DR is a risk management function that should be marketed by a retailer, under a different value chain from the supply chain. I have just sent an article to the editor and here are 2 paragraphs in advance.
The business case of Demand Response (DR) is enhanced under free markets, innovation, and probabilistic (risk) mindsets. DR is poised to be the demand side risk management tool to complement the traditional "LOLP" supply side risk management tool. There are two sides on the DR coin. On one side, system crashes are mitigated by a least cost mix of supply and demand risk management tools that may be applied in time and space. On the other, DR is the key to the segmentation of customers supply security (a kind of insurance). Because of its fine grain nature, DR can help mitigate delays (intended or not) of lumpy investments in generation, transmission, and distribution.
A new supply chain is required in the power business for commercial activities, from generators and wholesale brokers, to competitive retailers, to end-users; while transmission and distribution monopolies are forbidden to interfere with those activities, charging a toll for their services. This is an essential element of the market design.
José Antonio Vanderhorst Silverio, PhD Interdependent Consultant on Electricity firstname.lastname@example.org