¹ Department of Electrical Engineering, National Chung Hsing University (NCHU), 145 Xing Da Road, South District, Taichung 402, Taiwan;^* Correspondence: weichieh1986@yahoo.com;

Received: 1/10/2021, First revision: 12/11/2021, Accepted: 25/11/2021, Published: 22/12/2021

DOI: 10.54616/ijeps/20211201

1. A case for Demand Response

Past studies show that a significant amount of electricity can be saved with proper demand-side management strategies [1]. Therefore, it is one of the motivations to find out what is demand-side management strategy is and how is it being implemented. One way to increase the power transmission line's capacity is through a demand-side management program. There are two paths in electrical demand-side management. The first is through a demand response program, and the second is through implementing an electrical efficiency program. The electrical efficiency program methods effect mostly constant with time, while demand response program effects vary. However, the implementation of an electrical efficiency program usually involves investment cost, while a demand response program involves implementing managerial measures to free up the generating/transmitting capacity by influencing the load demand. Electrical demand response programs focus on how the electrical demand is planned to avoid big variation between peak and low demand. A capital grant or feed-in tariff-based incentive policy were normally suggested to encourage the use of renewable energy to implement electrical efficiency program strategies successfully, but renewable energy equipment installation such as solar panel, wind turbine, etc. were found to be challenging due to many barriers such as cost, renewable source availability, etc. [2].

An electrical demand response program is a tariff or program established to induce lower electricity consumption during peak demand or when grid reliability is jeopardized. There is significant scope for the Electrical demand response program to increase the efficiency and use of electrical system assets such as overhead transmission lines, generators, etc. Demand-side management has been studied since the early 1980s. It can be used as a tool to accomplish different load shaping objectives, such as valley filling, peak clip-ping, load shifting, strategic conservation, strategic load growth and flexible load shape [3]. A study showed that lower energy is required to purchase from the grid due to the electrical demand response program [4]. An overview of multiple electrical demand response programs and their theoretical background was provided by [5] and [6] studied their presence in few countries. A lot of studies are being conducted in the field of electrical demand response program in different categories, which include intelligent appliances [7], energy management systems [8-10], load shifting [11], smart grids [12],[13], power quality [14], comfort optimization [15], demand aggregation [16], integration of renewable energy [17], contracts [18], pricing [19], risk management [20].

Electrical demand response programs are divided into two groups. The first group is incentive base demand response program, while the second type is the price base program [21].

The former targets to reduce customers' energy consumption by providing time-varying or fixed incentives considering power system stress periods, while the latter seeks to motivate customers’ participation in altering the consumption patterns with response to time-varying electricity prices [22]. In the early developments of a demand response program, the absence of power generation on the energy demand side causes the demand response program to rely on large industrial loads mostly. Demand response program is applied through two kinds of demand response programs in power system, Incentive-based programs and price-based programs [23]. The incentive base demand response program pays large energy consumers to change their energy consumption patterns by load reduction or shifting. The price-based demand response program motivates consumers to voluntarily adjust their energy consumption through electricity price fluctuation in the power market [24].

Demand response program is one of the well-known programs used extensively to optimize energy systems with other performances economically. Demand response program includes different series of optimization programs [25]. TOU flattens the load curve by shifting some load from peak o off-peak periods, which minimizes the total cost [26].

There are two types of main categories of demand-side management as shown in Fig. 1. First is the static demand-side management program, which aims to equilibrate energy via control of energy consumption. Static demand-side management comprises activities such as advertisements or educations to encourage end-users to change their typical energy consumption pattern without onus, but the complete implementation of these methods purely depends on the customers’ volition eventually. Dynamic demand side is the second category of demand-side management. Onus of clients and their participation in integrated resources planning to attain demand-side management goals is required for dynamic side demand management. These methods aim to equilibrate energy via control of efficiency [27].

In conclusion, a demand response program motivates energy consumers to interact with energy suppliers by introducing electricity price or compensation. The demand response program takes advantage of controllable loads to improve the system's power quality during peak demand conditions.

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