IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v114y2016icp895-912.html
   My bibliography  Save this article

Demand side management in developing nations: A mitigating tool for energy imbalance and peak load management

Author

Listed:
  • Thakur, Jagruti
  • Chakraborty, Basab

Abstract

Demand Side Management, an integral feature of smart grid, exhibits high potential in load balancing and load shifting for efficient management of the power grids. Strategically designed DSM mechanisms can help mitigate load shedding and facilitate peak load management of grids. In India, only flat rate and inclining block rate tariff mechanism exist for residential customers. With the onset of 14 smart grid pilot projects in India, there is a need to address the realization of potential underlying various features of a smart grid. As India is a price sensitive market, time of use tariffs and other demand response programs are expected to potentially affect the consumer behavior in power consumption. In this paper, the usage pattern of residential customers, collected from a pilot project in India is analyzed for scaling the potential of DSM strategies. Simulations have been carried out for a price based mechanism as well as an incentive based mechanism to evaluate the underlying potential of DSM exclusively for residential consumers. The results of the simulation indicate that there is a definite scope for load balancing as well as financial savings.

Suggested Citation

  • Thakur, Jagruti & Chakraborty, Basab, 2016. "Demand side management in developing nations: A mitigating tool for energy imbalance and peak load management," Energy, Elsevier, vol. 114(C), pages 895-912.
    • Handle: RePEc:eee:energy:v:114:y:2016:i:c:p:895-912
    DOI: 10.1016/j.energy.2016.08.030
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544216311331
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2016.08.030?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David P. Brown & David E. M. Sappington, 2016. "On the optimal design of demand response policies," Journal of Regulatory Economics, Springer, vol. 49(3), pages 265-291, June.
    2. Farzan, Farbod & Jafari, Mohsen A. & Gong, Jie & Farzan, Farnaz & Stryker, Andrew, 2015. "A multi-scale adaptive model of residential energy demand," Applied Energy, Elsevier, vol. 150(C), pages 258-273.
    3. Faruqui, Ahmad & Sergici, Sanem & Sharif, Ahmed, 2010. "The impact of informational feedback on energy consumption—A survey of the experimental evidence," Energy, Elsevier, vol. 35(4), pages 1598-1608.
    4. Filippini, Massimo & Pachauri, Shonali, 2004. "Elasticities of electricity demand in urban Indian households," Energy Policy, Elsevier, vol. 32(3), pages 429-436, February.
    5. Lund, Henrik, 2007. "Renewable energy strategies for sustainable development," Energy, Elsevier, vol. 32(6), pages 912-919.
    6. Stötzer, Martin & Hauer, Ines & Richter, Marc & Styczynski, Zbigniew A., 2015. "Potential of demand side integration to maximize use of renewable energy sources in Germany," Applied Energy, Elsevier, vol. 146(C), pages 344-352.
    7. Erdinc, Ozan & Paterakis, Nikolaos G. & Pappi, Iliana N. & Bakirtzis, Anastasios G. & Catalão, João P.S., 2015. "A new perspective for sizing of distributed generation and energy storage for smart households under demand response," Applied Energy, Elsevier, vol. 143(C), pages 26-37.
    8. Bartusch, Cajsa & Wallin, Fredrik & Odlare, Monica & Vassileva, Iana & Wester, Lars, 2011. "Introducing a demand-based electricity distribution tariff in the residential sector: Demand response and customer perception," Energy Policy, Elsevier, vol. 39(9), pages 5008-5025, September.
    9. Herter, Karen & Wayland, Seth, 2010. "Residential response to critical-peak pricing of electricity: California evidence," Energy, Elsevier, vol. 35(4), pages 1561-1567.
    10. Wang, Qi & Zhang, Chunyu & Ding, Yi & Xydis, George & Wang, Jianhui & Østergaard, Jacob, 2015. "Review of real-time electricity markets for integrating Distributed Energy Resources and Demand Response," Applied Energy, Elsevier, vol. 138(C), pages 695-706.
    11. Behboodi, Sahand & Chassin, David P. & Crawford, Curran & Djilali, Ned, 2016. "Renewable resources portfolio optimization in the presence of demand response," Applied Energy, Elsevier, vol. 162(C), pages 139-148.
    12. Valeria Di Cosmo, Sean Lyons, and Anne Nolan, 2014. "Estimating the Impact of Time-of-Use Pricing on Irish Electricity Demand," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    13. Yang, Hongming & Xiong, Tonglin & Qiu, Jing & Qiu, Duo & Dong, Zhao Yang, 2016. "Optimal operation of DES/CCHP based regional multi-energy prosumer with demand response," Applied Energy, Elsevier, vol. 167(C), pages 353-365.
    14. Shen, Bo & Ghatikar, Girish & Lei, Zeng & Li, Jinkai & Wikler, Greg & Martin, Phil, 2014. "The role of regulatory reforms, market changes, and technology development to make demand response a viable resource in meeting energy challenges," Applied Energy, Elsevier, vol. 130(C), pages 814-823.
    15. Nolan, Sheila & O’Malley, Mark, 2015. "Challenges and barriers to demand response deployment and evaluation," Applied Energy, Elsevier, vol. 152(C), pages 1-10.
    16. Paulus, Moritz & Borggrefe, Frieder, 2011. "The potential of demand-side management in energy-intensive industries for electricity markets in Germany," Applied Energy, Elsevier, vol. 88(2), pages 432-441, February.
    17. Korkas, Christos D. & Baldi, Simone & Michailidis, Iakovos & Kosmatopoulos, Elias B., 2016. "Occupancy-based demand response and thermal comfort optimization in microgrids with renewable energy sources and energy storage," Applied Energy, Elsevier, vol. 163(C), pages 93-104.
    18. Finn, Paddy & Fitzpatrick, Colin, 2014. "Demand side management of industrial electricity consumption: Promoting the use of renewable energy through real-time pricing," Applied Energy, Elsevier, vol. 113(C), pages 11-21.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, Kaile & Yang, Shanlin, 2015. "Demand side management in China: The context of China’s power industry reform," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 954-965.
    2. Wang, Jianxiao & Zhong, Haiwang & Ma, Ziming & Xia, Qing & Kang, Chongqing, 2017. "Review and prospect of integrated demand response in the multi-energy system," Applied Energy, Elsevier, vol. 202(C), pages 772-782.
    3. Wang, Jianxiao & Zhong, Haiwang & Lai, Xiaowen & Xia, Qing & Shu, Chang & Kang, Chongqing, 2017. "Distributed real-time demand response based on Lagrangian multiplier optimal selection approach," Applied Energy, Elsevier, vol. 190(C), pages 949-959.
    4. Yan, Xing & Ozturk, Yusuf & Hu, Zechun & Song, Yonghua, 2018. "A review on price-driven residential demand response," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 411-419.
    5. Vallés, Mercedes & Bello, Antonio & Reneses, Javier & Frías, Pablo, 2018. "Probabilistic characterization of electricity consumer responsiveness to economic incentives," Applied Energy, Elsevier, vol. 216(C), pages 296-310.
    6. Weber, Sylvain & Puddu, Stefano & Pacheco, Diana, 2017. "Move it! How an electric contest motivates households to shift their load profile," Energy Economics, Elsevier, vol. 68(C), pages 255-270.
    7. Kocaman, Ayse Selin & Ozyoruk, Emin & Taneja, Shantanu & Modi, Vijay, 2020. "A stochastic framework to evaluate the impact of agricultural load flexibility on the sizing of renewable energy systems," Renewable Energy, Elsevier, vol. 152(C), pages 1067-1078.
    8. Paterakis, Nikolaos G. & Erdinç, Ozan & Catalão, João P.S., 2017. "An overview of Demand Response: Key-elements and international experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 871-891.
    9. Kirchem, Dana & Lynch, Muireann Á & Casey, Eoin & Bertsch, Valentin, 2019. "Demand response within the energy-for-water-nexus: A review," Papers WP637, Economic and Social Research Institute (ESRI).
    10. Dranka, Géremi Gilson & Ferreira, Paula, 2019. "Review and assessment of the different categories of demand response potentials," Energy, Elsevier, vol. 179(C), pages 280-294.
    11. Laurie Buys & Desley Vine & Gerard Ledwich & John Bell & Kerrie Mengersen & Peter Morris & Jim Lewis, 2015. "A Framework for Understanding and Generating Integrated Solutions for Residential Peak Energy Demand," PLOS ONE, Public Library of Science, vol. 10(3), pages 1-20, March.
    12. Kwon, Pil Seok & Østergaard, Poul, 2014. "Assessment and evaluation of flexible demand in a Danish future energy scenario," Applied Energy, Elsevier, vol. 134(C), pages 309-320.
    13. Yu, Mengmeng & Hong, Seung Ho, 2016. "Supply–demand balancing for power management in smart grid: A Stackelberg game approach," Applied Energy, Elsevier, vol. 164(C), pages 702-710.
    14. Yu, Yihua & Guo, Jin, 2016. "Identifying electricity-saving potential in rural China: Empirical evidence from a household survey," Energy Policy, Elsevier, vol. 94(C), pages 1-9.
    15. Märkle-Huß, Joscha & Feuerriegel, Stefan & Neumann, Dirk, 2018. "Large-scale demand response and its implications for spot prices, load and policies: Insights from the German-Austrian electricity market," Applied Energy, Elsevier, vol. 210(C), pages 1290-1298.
    16. Jiang, Bo & Muzhikyan, Aramazd & Farid, Amro M. & Youcef-Toumi, Kamal, 2017. "Demand side management in power grid enterprise control: A comparison of industrial & social welfare approaches," Applied Energy, Elsevier, vol. 187(C), pages 833-846.
    17. Alasseri, Rajeev & Tripathi, Ashish & Joji Rao, T. & Sreekanth, K.J., 2017. "A review on implementation strategies for demand side management (DSM) in Kuwait through incentive-based demand response programs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 617-635.
    18. Pechmann, Agnes & Shrouf, Fadi & Chonin, Max & Steenhusen, Nanke, 2017. "Load-shifting potential at SMEs manufacturing sites: A methodology and case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 431-438.
    19. Abdelmotteleb, Ibtihal & Gómez, Tomás & Chaves Ávila, José Pablo & Reneses, Javier, 2018. "Designing efficient distribution network charges in the context of active customers," Applied Energy, Elsevier, vol. 210(C), pages 815-826.
    20. Chen, Runze & Sun, Hongbin & Guo, Qinglai & Jin, Hongyang & Wu, Wenchuan & Zhang, Boming, 2015. "Profit-seeking energy-intensive enterprises participating in power system scheduling: Model and mechanism," Applied Energy, Elsevier, vol. 158(C), pages 263-274.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:114:y:2016:i:c:p:895-912. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.