Demand-Side Management in Microgrids: Between Theories and Practical Approaches

Currently, demand variation problems in power systems are mostly solved from the generation perspective. Fluctuating load demand is a challenge for operators to manage generator dispatch in order to achieve a balance of supply and load. On the other hand, the potential of demand-side management (DSM) has not been explored much as an alternative paradigm in power system control and operation. In fact, the demand management approach is promising because it offers a much cheaper solution than the investment and operation of additional power plants. Load growth which is much faster than the growth of power plants, is a rational reason to start thinking about how to manage the load effectively so that the system operates efficiently. This paper reviews the development of demand-side management (DSM), which has actually been around for a long time, and the extent to which the techniques and solutions have been put into practice. Furthermore, various DSM techniques in renewable energy-based microgrids currently developing rapidly are also discussed.