IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i5p1659-d756608.html
   My bibliography  Save this article

Overview of Demand-Response Services: A Review

Author

Listed:
  • Daiva Stanelyte

    (Smart Grids and Renewable Energy Laboratory, Lithuanian Energy Institute (LEI), LT-44403 Kaunas, Lithuania)

  • Neringa Radziukyniene

    (Smart Grids and Renewable Energy Laboratory, Lithuanian Energy Institute (LEI), LT-44403 Kaunas, Lithuania)

  • Virginijus Radziukynas

    (Smart Grids and Renewable Energy Laboratory, Lithuanian Energy Institute (LEI), LT-44403 Kaunas, Lithuania)

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.

Suggested Citation

  • Daiva Stanelyte & Neringa Radziukyniene & Virginijus Radziukynas, 2022. "Overview of Demand-Response Services: A Review," Energies, MDPI, vol. 15(5), pages 1-31, February.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:5:p:1659-:d:756608
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/5/1659/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/5/1659/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yajing Gao & Yanping Sun & Xiaodan Wang & Feifan Chen & Ali Ehsan & Hongmei Li & Hong Li, 2017. "Multi-Objective Optimized Aggregation of Demand Side Resources Based on a Self-organizing Map Clustering Algorithm Considering a Multi-Scenario Technique," Energies, MDPI, vol. 10(12), pages 1-20, December.
    2. Radenković, Miloš & Bogdanović, Zorica & Despotović-Zrakić, Marijana & Labus, Aleksandra & Lazarević, Saša, 2020. "Assessing consumer readiness for participation in IoT-based demand response business models," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    3. Gupta, Preeti & Pal Verma, Yajvender, 2021. "Voltage profile improvement using demand side management in distribution networks under frequency linked pricing regime," Applied Energy, Elsevier, vol. 295(C).
    4. Voulis, Nina & van Etten, Max J.J. & Chappin, Émile J.L. & Warnier, Martijn & Brazier, Frances M.T., 2019. "Rethinking European energy taxation to incentivise consumer demand response participation," Energy Policy, Elsevier, vol. 124(C), pages 156-168.
    5. Naser Hossein Motlagh & Mahsa Mohammadrezaei & Julian Hunt & Behnam Zakeri, 2020. "Internet of Things (IoT) and the Energy Sector," Energies, MDPI, vol. 13(2), pages 1-27, January.
    6. Barbero, Mattia & Corchero, Cristina & Canals Casals, Lluc & Igualada, Lucia & Heredia, F.-Javier, 2020. "Critical evaluation of European balancing markets to enable the participation of Demand Aggregators," Applied Energy, Elsevier, vol. 264(C).
    7. Koliou, Elta & Eid, Cherrelle & Chaves-Ávila, José Pablo & Hakvoort, Rudi A., 2014. "Demand response in liberalized electricity markets: Analysis of aggregated load participation in the German balancing mechanism," Energy, Elsevier, vol. 71(C), pages 245-254.
    8. Howlader, Abdul Motin & Sadoyama, Staci & Roose, Leon R. & Chen, Yan, 2020. "Active power control to mitigate voltage and frequency deviations for the smart grid using smart PV inverters," Applied Energy, Elsevier, vol. 258(C).
    9. Antonopoulos, Ioannis & Robu, Valentin & Couraud, Benoit & Kirli, Desen & Norbu, Sonam & Kiprakis, Aristides & Flynn, David & Elizondo-Gonzalez, Sergio & Wattam, Steve, 2020. "Artificial intelligence and machine learning approaches to energy demand-side response: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 130(C).
    10. Bergaentzlé, Claire & Clastres, Cédric & Khalfallah, Haikel, 2014. "Demand-side management and European environmental and energy goals: An optimal complementary approach," Energy Policy, Elsevier, vol. 67(C), pages 858-869.
    11. Kumar, Vinit & Singh, Mukesh, 2021. "Reactive power compensation using derated power generation mode of modified P&O algorithm in grid-interfaced PV system," Renewable Energy, Elsevier, vol. 178(C), pages 108-117.
    12. de Christo, Tiago Malavazi & Perron, Sylvain & Fardin, Jussara Farias & Simonetti, Domingos Sávio Lyrio & de Alvarez, Cristina Engel, 2019. "Demand-side energy management by cooperative combination of plans: A multi-objective method applicable to isolated communities," Applied Energy, Elsevier, vol. 240(C), pages 453-472.
    13. Kirkerud, J.G. & Nagel, N.O. & Bolkesjø, T.F., 2021. "The role of demand response in the future renewable northern European energy system," Energy, Elsevier, vol. 235(C).
    14. Guelpa, Elisa & Verda, Vittorio, 2021. "Demand response and other demand side management techniques for district heating: A review," Energy, Elsevier, vol. 219(C).
    15. Apajalahti, Eeva-Lotta & Lovio, Raimo & Heiskanen, Eva, 2015. "From demand side management (DSM) to energy efficiency services: A Finnish case study," Energy Policy, Elsevier, vol. 81(C), pages 76-85.
    16. Vijayan, Vineeth & Mohapatra, Abheejeet & Singh, S.N., 2021. "Demand Response with Volt/Var Optimization for unbalanced active distribution systems," Applied Energy, Elsevier, vol. 300(C).
    17. Hui, Hongxun & Ding, Yi & Shi, Qingxin & Li, Fangxing & Song, Yonghua & Yan, Jinyue, 2020. "5G network-based Internet of Things for demand response in smart grid: A survey on application potential," Applied Energy, Elsevier, vol. 257(C).
    18. Kohlhepp, Peter & Harb, Hassan & Wolisz, Henryk & Waczowicz, Simon & Müller, Dirk & Hagenmeyer, Veit, 2019. "Large-scale grid integration of residential thermal energy storages as demand-side flexibility resource: A review of international field studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 527-547.
    19. José Miguel Paredes-Parra & Antonio Javier García-Sánchez & Antonio Mateo-Aroca & Ángel Molina-García, 2019. "An Alternative Internet-of-Things Solution Based on LoRa for PV Power Plants: Data Monitoring and Management," Energies, MDPI, vol. 12(5), pages 1-20, March.
    20. Lau, E.T. & Yang, Q. & Stokes, L. & Taylor, G.A. & Forbes, A.B. & Clarkson, P. & Wright, P.S. & Livina, V.N., 2015. "Carbon savings in the UK demand side response programmes," Applied Energy, Elsevier, vol. 159(C), pages 478-489.
    21. Boogen, Nina & Datta, Souvik & Filippini, Massimo, 2017. "Demand-side management by electric utilities in Switzerland: Analyzing its impact on residential electricity demand," Energy Economics, Elsevier, vol. 64(C), pages 402-414.
    22. Wohlfarth, Katharina & Worrell, Ernst & Eichhammer, Wolfgang, 2020. "Energy efficiency and demand response – two sides of the same coin?," Energy Policy, Elsevier, vol. 137(C).
    23. Warren, Peter, 2014. "A review of demand-side management policy in the UK," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 941-951.
    24. Lu, Qing & Yu, Hao & Zhao, Kangli & Leng, Yajun & Hou, Jianchao & Xie, Pinjie, 2019. "Residential demand response considering distributed PV consumption: A model based on China's PV policy," Energy, Elsevier, vol. 172(C), pages 443-456.
    25. Li, Weilin & Xu, Peng & Lu, Xing & Wang, Huilong & Pang, Zhihong, 2016. "Electricity demand response in China: Status, feasible market schemes and pilots," Energy, Elsevier, vol. 114(C), pages 981-994.
    26. Claire Bergaentzlé & Cédric Clastres & Haikel Khalfallah, 2014. "Demand-side management and European environmental and energy goals: an optimal complementary approach," Post-Print halshs-00928678, HAL.
    27. Haider, Haider Tarish & See, Ong Hang & Elmenreich, Wilfried, 2016. "A review of residential demand response of smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 166-178.
    28. Mellit, Adel & Kalogirou, Soteris, 2021. "Artificial intelligence and internet of things to improve efficacy of diagnosis and remote sensing of solar photovoltaic systems: Challenges, recommendations and future directions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    29. Srivastava, Aman & Van Passel, Steven & Kessels, Roselinde & Valkering, Pieter & Laes, Erik, 2020. "Reducing winter peaks in electricity consumption: A choice experiment to structure demand response programs," Energy Policy, Elsevier, vol. 137(C).
    30. Gjorgievski, Vladimir Z. & Markovska, Natasa & Abazi, Alajdin & Duić, Neven, 2021. "The potential of power-to-heat demand response to improve the flexibility of the energy system: An empirical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    31. Panos, Evangelos & Kober, Tom & Wokaun, Alexander, 2019. "Long term evaluation of electric storage technologies vs alternative flexibility options for the Swiss energy system," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    32. Wang, Fei & Lu, Xiaoxing & Chang, Xiqiang & Cao, Xin & Yan, Siqing & Li, Kangping & Duić, Neven & Shafie-khah, Miadreza & Catalão, João P.S., 2022. "Household profile identification for behavioral demand response: A semi-supervised learning approach using smart meter data," Energy, Elsevier, vol. 238(PB).
    33. Olkkonen, Ville & Rinne, Samuli & Hast, Aira & Syri, Sanna, 2017. "Benefits of DSM measures in the future Finnish energy system," Energy, Elsevier, vol. 137(C), pages 729-738.
    34. Zhu, Shuai & Song, Malin & Lim, Ming Kim & Wang, Jianlin & Zhao, Jiajia, 2020. "The development of energy blockchain and its implications for China's energy sector," Resources Policy, Elsevier, vol. 66(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wadim Strielkowski & Andrey Vlasov & Kirill Selivanov & Konstantin Muraviev & Vadim Shakhnov, 2023. "Prospects and Challenges of the Machine Learning and Data-Driven Methods for the Predictive Analysis of Power Systems: A Review," Energies, MDPI, vol. 16(10), pages 1-31, May.
    2. Cátia Silva & Pedro Faria & Zita Vale, 2023. "Demand Response Implementation: Overview of Europe and United States Status," Energies, MDPI, vol. 16(10), pages 1-20, May.
    3. Siti Rosilah Arsad & Muhamad Haziq Hasnul Hadi & Nayli Aliah Mohd Afandi & Pin Jern Ker & Shirley Gee Hoon Tang & Madihah Mohd Afzal & Santhi Ramanathan & Chai Phing Chen & Prajindra Sankar Krishnan &, 2023. "The Impact of COVID-19 on the Energy Sector and the Role of AI: An Analytical Review on Pre- to Post-Pandemic Perspectives," Energies, MDPI, vol. 16(18), pages 1-31, September.
    4. Jinghong Zhou & Ke Chen & Weidong Wang, 2023. "A Power Evolution Game Model and Its Application Contained in Virtual Power Plants," Energies, MDPI, vol. 16(11), pages 1-22, May.
    5. Ajla Mehinovic & Matej Zajc & Nermin Suljanovic, 2023. "Interpretation and Quantification of the Flexibility Sources Location on the Flexibility Service in the Distribution Grid," Energies, MDPI, vol. 16(2), pages 1-18, January.
    6. Sonsaard, Parinya & Ketjoy, Nipon & Mensin, Yodthong, 2023. "Market strategy options to implement Thailand demand response program policy," Energy Policy, Elsevier, vol. 173(C).
    7. Eduardo J. Salazar & Mauro Jurado & Mauricio E. Samper, 2023. "Reinforcement Learning-Based Pricing and Incentive Strategy for Demand Response in Smart Grids," Energies, MDPI, vol. 16(3), pages 1-33, February.
    8. Ussama Assad & Muhammad Arshad Shehzad Hassan & Umar Farooq & Asif Kabir & Muhammad Zeeshan Khan & S. Sabahat H. Bukhari & Zain ul Abidin Jaffri & Judit Oláh & József Popp, 2022. "Smart Grid, Demand Response and Optimization: A Critical Review of Computational Methods," Energies, MDPI, vol. 15(6), pages 1-36, March.
    9. Ruben Barreto & Calvin Gonçalves & Luis Gomes & Pedro Faria & Zita Vale, 2022. "Evaluation Metrics to Assess the Most Suitable Energy Community End-Users to Participate in Demand Response," Energies, MDPI, vol. 15(7), pages 1-18, March.
    10. Olga Bogdanova & Karīna Viskuba & Laila Zemīte, 2023. "A Review of Barriers and Enables in Demand Response Performance Chain," Energies, MDPI, vol. 16(18), pages 1-33, September.
    11. Pedro Faria & Zita Vale, 2022. "Realistic Load Modeling for Efficient Consumption Management Using Real-Time Simulation and Power Hardware-in-the-Loop," Energies, MDPI, vol. 16(1), pages 1-15, December.
    12. Marta Biegańska, 2022. "IoT-Based Decentralized Energy Systems," Energies, MDPI, vol. 15(21), pages 1-20, October.
    13. Yichang Zhang & Sha He & Min Pang & Qiong Li, 2023. "Green Technology Innovation of Energy Internet Enterprises: Study on Influencing Factors under Dual Carbon Goals," Energies, MDPI, vol. 16(3), pages 1-16, January.

    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. Jinghong Zhou & Ke Chen & Weidong Wang, 2023. "A Power Evolution Game Model and Its Application Contained in Virtual Power Plants," Energies, MDPI, vol. 16(11), pages 1-22, May.
    2. Haider, Haider Tarish & See, Ong Hang & Elmenreich, Wilfried, 2016. "Residential demand response scheme based on adaptive consumption level pricing," Energy, Elsevier, vol. 113(C), pages 301-308.
    3. Meyabadi, A. Fattahi & Deihimi, M.H., 2017. "A review of demand-side management: Reconsidering theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 367-379.
    4. Morteza Zare Oskouei & Ayşe Aybike Şeker & Süleyman Tunçel & Emin Demirbaş & Tuba Gözel & Mehmet Hakan Hocaoğlu & Mehdi Abapour & Behnam Mohammadi-Ivatloo, 2022. "A Critical Review on the Impacts of Energy Storage Systems and Demand-Side Management Strategies in the Economic Operation of Renewable-Based Distribution Network," Sustainability, MDPI, vol. 14(4), pages 1-34, February.
    5. Golmohamadi, Hessam, 2022. "Demand-side management in industrial sector: A review of heavy industries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    6. 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.
    7. Adrian Tantau & András Puskás-Tompos & Laurentiu Fratila & Costel Stanciu, 2021. "Acceptance of Demand Response and Aggregators as a Solution to Optimize the Relation between Energy Producers and Consumers in order to Increase the Amount of Renewable Energy in the Grid," Energies, MDPI, vol. 14(12), pages 1-19, June.
    8. Aikaterini Forouli & Emmanouil A. Bakirtzis & Georgios Papazoglou & Konstantinos Oureilidis & Vasileios Gkountis & Luisa Candido & Eloi Delgado Ferrer & Pandelis Biskas, 2021. "Assessment of Demand Side Flexibility in European Electricity Markets: A Country Level Review," Energies, MDPI, vol. 14(8), pages 1-23, April.
    9. Ussama Assad & Muhammad Arshad Shehzad Hassan & Umar Farooq & Asif Kabir & Muhammad Zeeshan Khan & S. Sabahat H. Bukhari & Zain ul Abidin Jaffri & Judit Oláh & József Popp, 2022. "Smart Grid, Demand Response and Optimization: A Critical Review of Computational Methods," Energies, MDPI, vol. 15(6), pages 1-36, March.
    10. Annala, Salla & Ruggiero, Salvatore & Kangas, Hanna-Liisa & Honkapuro, Samuli & Ohrling, Tiina, 2022. "Impact of home market on business development and internationalization of demand response firms," Energy, Elsevier, vol. 242(C).
    11. Arteconi, Alessia & Patteeuw, Dieter & Bruninx, Kenneth & Delarue, Erik & D’haeseleer, William & Helsen, Lieve, 2016. "Active demand response with electric heating systems: Impact of market penetration," Applied Energy, Elsevier, vol. 177(C), pages 636-648.
    12. Máximo A. Domínguez-Garabitos & Víctor S. Ocaña-Guevara & Félix Santos-García & Adriana Arango-Manrique & Miguel Aybar-Mejía, 2022. "A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market," Energies, MDPI, vol. 15(4), pages 1-28, February.
    13. Haider, Haider Tarish & See, Ong Hang & Elmenreich, Wilfried, 2016. "A review of residential demand response of smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 166-178.
    14. 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.
    15. 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.
    16. Voulis, Nina & van Etten, Max J.J. & Chappin, Émile J.L. & Warnier, Martijn & Brazier, Frances M.T., 2019. "Rethinking European energy taxation to incentivise consumer demand response participation," Energy Policy, Elsevier, vol. 124(C), pages 156-168.
    17. Kanakadhurga, Dharmaraj & Prabaharan, Natarajan, 2022. "Demand side management in microgrid: A critical review of key issues and recent trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    18. Jahangir Hossain & Aida. F. A. Kadir & Ainain. N. Hanafi & Hussain Shareef & Tamer Khatib & Kyairul. A. Baharin & Mohamad. F. Sulaima, 2023. "A Review on Optimal Energy Management in Commercial Buildings," Energies, MDPI, vol. 16(4), pages 1-40, February.
    19. Patteeuw, Dieter & Bruninx, Kenneth & Arteconi, Alessia & Delarue, Erik & D’haeseleer, William & Helsen, Lieve, 2015. "Integrated modeling of active demand response with electric heating systems coupled to thermal energy storage systems," Applied Energy, Elsevier, vol. 151(C), pages 306-319.
    20. Feuerriegel, Stefan & Neumann, Dirk, 2016. "Integration scenarios of Demand Response into electricity markets: Load shifting, financial savings and policy implications," Energy Policy, Elsevier, vol. 96(C), pages 231-240.

    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:gam:jeners:v:15:y:2022:i:5:p:1659-:d:756608. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.