Implementation of demand response in different control strategies of smart grids

Smart grids facilitate the implementation of demand response programs by providing suitable communication infrastructure. The demand bidding/buyback is one of the demand response (DR) programs that encourages large consumers to change their energy consumption pattern and decline their peak load in return for financial rewards. In this paper, implementation of the demand bidding/buyback program in centralized and fully distributed control strategy is modeled, and the required information exchanges are depicted. Finally, features of each control strategy are summarized.

I. Introduction

Smart grid refers to the operation of the power system using communication, power electronics, and storage technologies in order to balance supply and demand at all levels [1]–[3]. Two-way communication infrastructure used in smart grids facilitates effective participation of supply and demand side in electricity markets.