Incentive-based demand response: Case study

Abstract

The present article discusses the development of a demand response system on a residential setting given that the proper management of energy resources by users can solve scarcity and energy reliability issues. The behavior of 1000 residential users is modelled through a peak control program based on economic and energy-related incentives. A demand response (DR) application is used where remuneration depends on scarcity pricing. The case study is shown including a mathematic algorithm and the application. The results obtained with the application exhibit a reduction of energy peaks, which translates into more efficient energy management which in turn is remunerated by scarcity pricing. It is concluded that the incentive-based DR program is viable both energy-wise and financially.