A review on price-driven residential demand response

Smart grid enables the two-way communication between the suppliers and consumers. Price-driven demand response (PDDR) is one of the important demand response categories that uses price of the energy as control signals to affect consumers’ electricity consumption. The current PDDR programs include cr...

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Bibliographic Details
Published in:Renewable & sustainable energy reviews 2018-11, Vol.96, p.411-419
Main Authors: Yan, Xing, Ozturk, Yusuf, Hu, Zechun, Song, Yonghua
Format: Article
Language:English
Subjects:
Critical peak pricing
Demand response
Real-time pricing
Time-of-use pricing
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Summary:Smart grid enables the two-way communication between the suppliers and consumers. Price-driven demand response (PDDR) is one of the important demand response categories that uses price of the energy as control signals to affect consumers’ electricity consumption. The current PDDR programs include critical peak pricing (CPP), time-of-use (TOU) pricing, and real-time pricing. In this paper, we provide a review of the PDDR studies. Detailed evaluations on advantages and disadvantages of each PDDR are provided. Concerns and future research challenges on PDDR are also addressed. It is believed that with the installation of smart meter infrastructures at residential households, price signal can be an efficient market tool for peak demand shaving, risk and reliability management, carbon emission reduction, and energy cost reduction. •A review on price-based residential demand response is proposed.•Evaluated critical peak pricing, time-of-use pricing, and real-time pricing programs.•A P2P trading method is proposed in the PDDR program.•Advantages and disadvantages of each price-based demand response are provided.•Price signal can be an efficient tool for residential demand response.
ISSN:1364-0321
1879-0690
DOI:10.1016/j.rser.2018.08.003