The role of incentive based Demand Response programs in smart grid

Smart Grid promises the highest efficiency in the history of electrical energy and one of its key components is Demand Response (DR). Incentive based programs however would have a different path in smart grid and their usage would be different in this new environment. In this paper, incentive based DR programs are briefly introduced, smart grid is presented and the influence of smart grid on incentive based DR programs is described considering the effect of Real Time Pricing (RTP). Finally, an existing model has been upgraded in order to analyze incentive based programs in smart grid. Eventually the influence of a typical demand bidding program is simulated on the load curve of a day in smart grid in the presence of RTP program.