Overview of Demand-Response Services: A Review
Daiva Stanelytė, Neringa Radziukynienė, Virginijus Radziukynas
Abstract
It is essential for the electricity sector to analyze and determine the distribution capacity throughput and apply new methods aimed at increasing the capacity of the transmission system. Consequently, the transition to modern electricity networks is two-sided, i.e., involving technological and social modifications. The demand response (DR) redistributes consumption away from peak times when grid load and costs are the highest. It incentivizes customers to use electricity when supply is high and inexpensive due to various market mechanisms. The present DR policy proposals stress the importance of fostering behavioral change through competitive pricing and customer participation in reducing carbon emissions and implementing smart energy solutions (including monitoring tools, such as smart meters and applications). The internet of things (IoT) has been applied to ensure adaptive monitoring of energy consumption and cost-effective and adequate demand-side management (DSM). The article is based on the research of the most recent sources of DR implementation methods applied at the power distribution level. It explains the main concepts, classifications, and entities implementing DSM programs, and suggests new visions and prospects for DSM and DR. Moreover, it discusses the application of blockchain technology potential for the internet of energy.