A Review of Incentive Based Demand Response Methods in Smart Electricity Grids

Smart electricity grid is a complex system being the outcome of the marriage of power systems with computing technologies and information networks. The information transmitted in the network is utilized for controlling the power flow in the electricity distribution grid. Thus smart grid facilitates a demand response approach, where grid participants monitor and respond to information signals with their electricity demand. This review paper focuses on a subclass of demand response methods and more particularly in incentive based demand response. It aims at providing a review of the existing and proposed methods while briefly explaining their main points and outcomes. In the current approach, the plethora of methods on incentive based demand response is grouped according to the tools adopted to implement the incentives. The overall goal is to provide a comprehensive list of incentive design tools and be a point of inspiration for researchers in the field of incentive based demand response in smart grids.