Demand response and smart grids—A survey

The smart grid is conceived of as an electric grid that can deliver electricity in a controlled, smart way from points of generation to active consumers. Demand response (DR), by promoting the interaction and responsiveness of the customers, may offer a broad range of potential benefits on system operation and expansion and on market efficiency. Moreover, by improving the reliability of the power system and, in the long term, lowering peak demand, DR reduces overall plant and capital cost investments and postpones the need for network upgrades. In this paper a survey of DR potentials and benefits in smart grids is presented. Innovative enabling technologies and systems, such as smart meters, energy controllers, communication systems, decisive to facilitate the coordination of efficiency and DR in a smart grid, are described and discussed with reference to real industrial case studies and research projects.