Perspectives of Demand‐Side Management Under Smart Grid Concept

Abstract

Demand-side management (DSM) has a key role in the Smart Grid (SG) concept to control the demand-side consumption and reduce peak loads. The ability to shift peak loads and provide the energy efficiency through better demand-side management is currently one of the most promising approaches to solve problems related to peak demand. DSM has some different terms such as demand-side energy management (DSEM), load energy management (LEM), demand response (DR), and automated load management (ALM) and all terms refer to the balancing of energy generation and consumption. DSM includes all the process in demand energy systems such as utilities renovation operations, metering, energy pricing, monitoring, customer comfort, home energy management systems, and so on. In addition, DSM has superior advantage that it is less expensive to intelligently influence a load than to build a new power plant or install some electric storage device. All these DSM strategies are used for optimum and efficient energy consumption. In this chapter, the general perspective is given for DSM under SG concept and describes the DSM architecture and its benefits of the customer side and utility side. Also, it explains the DR techniques and classified DR programs and give some information about dynamic pricing and smart metering. Then the impact of DR programs is discussed in residential energy management perspectives. It also gives some details about home energy management (HEM) concept. Finally, it discusses about DSM standards. In conclusion, the existing DSM applications and what could be done in the future works are discussed.