A New Model of Demand Response in Smart Grid

Abstract

Energy plays a key role in the modern life of industrial economy, that’s why before the 1970s, the traditional concept of development was centered on economic growth, and countries to increase their economic growth rate, focused more and more on extracting and using energy sources and exposed them. As a result of these activities, a large amount of pollution entered the environment and it caused a lot of damage to natural environment and major sources of energy, insofar as in the early 1990s, the concept of sustainable improvement has been defined as expansion that assembles the requirements of the current without cooperating the facility of future generations to congregate their own requirements, that is based on 5E (Energy, Environment, Economy, Education, Execution). In the power grid, electricity has the highest exergy rate. This unique feature of electrical energy along with environmental considerations has caused electricity to stabilize its position as the most widely used form of energy. But the power industry along with all the benefits mentioned is facing with serious limitations including cost of investment, long time to execute projects, and environmental degradation in the areas of generation, transmission, and distribution, therefore utilities around the world have been considering demand-side management and demand response in their strategic planning. This chapter discusses a conventional demand response technical objective which usually tries to take influence onto the energy consumption in the smart grid and presents a new model of demand response that has an interactive approach to consider the interaction between utility and industrial customers.