Potential of Demand Response for Power Reallocation, a Literature Review

The power demand on the electric grid varies according to the time of the day following users’ needs and so does the cost of electricity supply because the electricity mix is formed using different generators of varying capacities. Demand response (DR) is the modification of the consumption load curve following a signal from the electricity provider; it is mostly used for peak clipping. By reducing the short-term mismatch between generation and consumption, it helps to integrate intermittent renewables and new low-carbon technologies such as energy storage, electric vehicles, and power-to-gas. The present work is a literature survey based on the following keywords: demand response, demand technology, potential, power, and power dispatch, which aims to provide a summary of the state of the art regarding the potential for demand response implementation. Literature is either related to potential assessment or to implementation; less focus is given on non-dispatchable DR than on dispatchable DR. There is a great untapped potential for power demand reallocation in all sectors. Incentivizing users to participate in demand response programs is crucial, as well as education campaigns and smart meters penetration. The barriers to demand response are mostly the investment costs in the absence of an adequate pricing scheme.