Demand response in future power networks: Panorama and state-of-the-art

One of the key features of future power networks, referred to as smart grids, is deploying demand-side resources in order to reduce the stress at the supply side. This implies active participation of electricity customers, as a societal network, in the power networks, as a physical network, which increases the interdependencies of these two networks due to the effect of demand response programs on power systems. Furthermore, in the future smart cities there is a crucial need to take advantage of demand-side resources to supply electricity in a sustainable manner. In this context, demand response programs play a pivotal role in electricity market in order to achieve supply-demand balance by taking advantage of the load flexibility. In this chapter, we provide a thorough review of the state-of-the-art approaches to implement demand response programs in smart grid environment. To this end, we first introduce the available methods to model load participation in terms of demand response programs, such as game theoretic frameworks, price elasticity, and direct load control. We then review the methods for integrating demand-side resources into power systems. Several aspects of demand response programs are reviewed in this chapter. Finally, an overview of the recent advances in demand response literature is presented