Demand-Side Management and Demand Response for Smart Grid

Abstract

Demand-side management (DSM) and a market mechanism involving demand response (DR) receive significant attention. The DSM is an emerging initiative which is one of the key elements of restructured power systems. An objective of any DSM program could be peak load clipping instead of adding generation supply, by simply shifting timing from the peak load period to off-peak period. The DR seeks to adjust load demand instead of adjusting generation supply. Different types of load shaping objectives, such as peak clipping, valley filling, load shifting, produce the DR. A compensation for the DR is triggered by diverse policies, market mechanism and implementation models. The integration of DR resources in electric power system becomes worldwide due to advent of communication technologies and metering infrastructure. With the evolving restructured electricity market, aggregator as a mediator between market operator and end-user customers. This chapter discusses six major DSM aspects: (1) the DR resources, (2) possible DR program models, (3) enabler technology framework and policy, (4) role of DR exchange (DRX) market, (5) optimization algorithms used and (6) a few implementation issues like end-users engagement, privacy preservation, and DR rebounding. An optimization algorithm for specific DRX market structures and how the market participants interact is described in detail.