Demand Side Management: In Electrical Power Systems


Smart Grid [1], [2] constitute a perception of the next generation power systems associated with various control and sensing technologies, with effective communication at transmission and distribution side to fulfill optimal demand in a foolproof way. The important features [2] of modern grid, according to U.S. Energy grid report are consumer comity, fool proof healing ability, resistance ability during faulty condition, potential to use generation options with storage, market dependent well organized operations and better power caliber in optimal way. This advance grid is motivated by several techno-economical and socio-economical factors in association with environmental benefits.

Demand Response (DR) can be given as the adjustment in usage of electricity by end users from their normal daily utilization figures for changes in price of electricity during that time. Advance definition of DR is given by “designing the incentive payments to engender minimum use of electricity at the same time when market prices are high or system reliability is under the threat” [3].

Consumers can respond in three ways [3-7]:

  1. Reduce consumption at targeted times but maintain same consumption figures at other times. This type of respond has a temporary loss of consumer’s comfort.
  2. Shift consumption from targeted times to other time cycle so that overall consumption is the same; or
  3. Use on-site generation.

Fig.1. A simplified graph of the electricity market with and without DSM [31]

In electricity system should be a ideal coordination between supply and demand in real time for modest operation but there is complexity i.e. the level of supply and demand usually change briskly due to many reasons involve, generation unit outages, line outages at transmission and distribution side and quick changes in load. The infrastructure of power system is heavily capital accelerated; so DR  is one of the cheapest resources available for optimal operation of the system [3]. Another important and main market profit is the reduction in price volatility in the wholesale market. A small depletion in demand will result in a big depletion in cost of generation and electricity price in real time, as shown in Fig. 1.


  • 1.1 Classifications of Demand Response Program

Fig.2. Classification of DR programs [31]

Various DR programs are shown in Fig. 2. DR programs can be divided into two main categories, Despatchable or Incentive Based Programs (IBP) and Non Despatchable or Price Based Programs (PBP) [3][8]. Despatchable programs are further classified into two categories, classical and market based programs. Classical programs include Direct Load Control (DLC) and Interruptible or Curtailable services (I/Cs). Market based programs divided into four categories; Emergency DR Programs (EDRP), Demand Bidding (DB), Capacity Market Programs (CMP) and Ancillary services market Programs (ASMP).

PBP programs are based on spirited pricing rates i.e. electricity prices rates fluctuate hourly and not follow the flat rate pattern. These rates classified in to three main categories, Time of Use (TOU) price, Real Time Pricing (RTP) and Critical Peak Price (CPP) which is further divided into two categories; Extreme Day Price (EDP), Extreme CPP (ED-CPP).

  • 1.2 Demand Response Benefits

Fig.3. Benefits related to DR [31]

Fig. 3 shows the benefits related to DR. They divided into four categories: participant side, market side, in term of reliability and market performance.

The profits of DR programs are not only for participants welfare but also some are market focused, e.g. the reduction of overall demand results in reduction in expenses of newly installed generating units. Reliability assets can be considered as one of the market- focused aid because they affected the all programs participants [9].

The last category of DR program is improving electricity market performance [10]. Consumers can control the power of market using market based programs and spirited pricing programs [11-12].

A brief literature survey to understand the concept and applications of demand side management/demand response is presented in the following sections:

  • Wind and Renewable Integration

Demand response has been studied broadly as a tool to enable better, more efficient
integration of wind and other renewable generation resources. The dynamic recurring,
uncertainty, variability and volatility of wind can be prevented with demand response in a fast and cost-effective manner [13-18].

  • Market and Remuneration

It demonstrated the procedure in which the power detachment on the consumer side is rewarded. It can be divided as price based, incentive based and combination of both called hybrid. In PBP, users lower their uses according to the spirited change price imposed by operator or by the energy stock market. IBP assume that users are separately or conjointly committed to lower their consumption during a certain peak time period. Price based and incentive based methods are collectively called hybrid DR program [19-23].

  • Behavioral Analysis of Different Types of Users

The classification of the participating consumers can be entrenched based on behavioral analysis of users and precedent that go from average level consumption to techno-economic and socio-economic level. In it, the distribution has been facilitating according to the types of user [24-28].


DSM alters the electricity consumption to yield the desired changes in the load contour at distribution side. To avoid the peak demand, DSM concentrates [29] on power saving methodologies, electricity rates, fiscal incentives and user/environment friendly government policies., Due to increase in electricity demand, system become unstable and to avoid this instabilities, a worthy goal of demand side management finalized that could be to alter the configuration of the load curve by lowering and shifting the total load demand at distribution side during peak load periods in sequence to  reduce the final tariff of electricity. So the system requires an enlightened coordination between operators and consumers. The load configurations which show the daily electric demands of  residential, commercial and industrial consumers between peak time and off peak times can be changed by means of six broad methods [29] [30]: peak clipping, load shifting, valley filling, load growth, strategic conservation and flexible load curve. These six topologies of demand side management are shown in Fig. 4. Peak clipping and valley filling methods focused on leveling the peak and valley load levels to avert the anxiety of insecurity of smart grid. Peak clip method [29] [30] is a direct load control (DLC) method. Load shifting [29] [30] is globally applied effectively as load management technique by shifting the loads from peak consumption time to off peak consumption time. Strategic conservation [29] intends to apply  demand curtail methods directly at customer houses, to achieve load shape optimization. Strategic load growth [29] [30] approximate equals to valley fill technique but it used in case of large demand to optimizes the daily response. Flexible load shape [29] [30] is mainly associated to smart grid reliability. Smart grid management systems (SGMS) find the customers with flexible controlled loads during peak load in trading for various financial incentives or rewards.

Fig.4. Demand side management techniques [31]


By Prof. Ankit Kumar Sharma,
Department of Electrical Engineering,
University of Engineering & Management (UEM), Jaipur




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One thought on “Demand Side Management: In Electrical Power Systems

  • Very good initiative, but I am thinking about in-time breake-down
    maintenance is still in primitive technology. I have prepared an online identification proposal paper but need like you person.


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