Demand Response Management, a critical component of the future smart grid

Demand Response Management (DRM), is a crucial component of actual/upcoming smart grids, playing an active role in reducing peak demand and power fluctuation.

Demand Response: Upside for the end-customer

Users can play an important part in grid management through demand response by lowering or adjusting their power usage during peak hours in response to time-based tariffs or other types of financial incentives.

Some electricity grid operators and decision-makers employ demand response programs as resource alternatives for balancing supply and demand. Offering time-based rates such as time-of-use pricing, critical peak pricing, variable peak pricing, real-time pricing, and critical peak refunds are examples of ways to engage customers in demand response operations.

Direct load management schemes, which allow power providers to cycle air conditioners and water heaters on and off during peak demand hours in return for cheaper electricity costs, are also included. Individual load limit settings are allowing a higher degree of flexibility.

Benefits for utilities and electrical power providers

Electric power providers, whose capabilities and potential effects are being increased by grid modernisation initiatives, are beginning to perceive demand response management (DRM) as an increasingly important resource option.

For instance, smart meters and other sensors can identify peak load issues and employ automated switching to reroute or cut electricity in vital areas, preventing overload and subsequent power outages. The number of time-based pricing schemes that are offered to consumers has increased with the availability of improved metering technologies.

By giving customers knowledge about their power usage and costs, smart meter systems and accessories, such as in-home displays or home-area networks, can assist customers in changing their behaviour and reducing peak hour use. By lowering peak demand, these approaches may also help electricity providers protect their revenue.

The role of renewables

DRM advances to the next stage when combined with energy storage. The flexible power grid sources of demand response and energy storage help to better synchronise the output and demand of renewable energy.

In contrast to storage systems, which can store excess wind output for use at times of low wind generation and high load, demand response, for instance, enables demand to be shifted to periods of comparatively high wind generation and low load.

Due to the individual features of the local grids, it is impossible to estimate the point at which storage with demand response becomes economically viable. Demand for all forms of flexibility is increased by high variable generation penetration, which opens up new markets for storage and demand response technologies.

Takeaway

Demand response management requires the use of every system solution and resource available. It consists more of a blend of real-time data, progressive predictions, storage options, and other software and hardware elements.

We address the key components of demand response with an appropriate advanced meter integration, our smart distribution system, and intelligent energy storage control. For specific questions, get in touch with us.