Demand Side Management in Industrial, Commercial, and Residential Sectors: A Review of Constraints and Considerations

Abstract

Demand Side Management (DSM) is a cost-effective approach to managing electricity networks, aimed at reducing capacity requirements and costs, increasing the penetration of renewable generation, and reducing power system emissions. This review article explores the distinctive characteristics of electricity demand in the industrial, commercial, and residential sectors, and their relationship to successful implementation of DSM. The constraints and considerations for DSM are characterized as technical, economic, and behavioral factors, such as process requirements, business operation constraints, and consumer decisions, respectively. By considering all three types of factors and their impacts in each sector, this review contributes novel insights that can inform the future implementation of DSM. DSM in the industrial and commercial sectors is found to be primarily constrained by technical considerations, while DSM in the commercial sector is also subject to economic constraints. Conversely, residential demand is found to be primarily constrained by human behavior and outcomes, highly variable, and the largest contributor to peak demand. This review identifies sector-specific opportunities to enhance DSM uptake. Industrial DSM uptake will benefit from technological and process improvements; commercial DSM uptake can benefit from enhanced economic incentivization; and residential DSM uptake can benefit from improved understanding of the interactions between human behavior, human outcomes, and energy use. Finally, this review investigates behavioral models and concludes that agent-based models are best suited for integrating these interactions into energy models, thereby driving the uptake of DSM, particularly in the important residential sector.

A Survey of Commercial and Industrial Demand Response Flexibility with Energy Storage Systems and Renewable Energy

“…The addition of demand-side flexibility in the system is a promising solution, considering the benefits of adding RESs and their challenges to the power system [34]. Demand-side flexibility enables consumers to reshape their load profile [21], and when this flexibility is effected to respond to a high electricity price signal or any hazardous condition of power system issue in exchange for incentives, this action is known as demand response (DR) [35].…”

“…Through DR participation, WWTPs can gain energy cost savings, assist in grid pressure reduction, and decarbonization. However, due to business regulations, restricted interconnected industrial processes, or quality requirements, frequent load or process interruption is difficult for C&I consumers like WWTPs, which is an obstacle to the efficient implementation of DR [21]. An integrated system with DR-ESS-ORG can enable DR participation with restricted loads and increase demand flexibility for C&I consumers, which requires research attention.…”

“…However, an integrated energy system framework including DR-, ESS-, and ORG-focused review for C&I consumers is needed to the best of the authors' knowledge. Insufficient knowledge about the available flexibility is one of the main barriers for C&I consumers [21,23,28] which requires a knowledge transfer through further research. So, an exclusive survey is crucial for the C&I consumers which can assist the energy stakeholders to obtain knowledge about the means of available flexibility in a single study and further analysis for making decisions.…”

Research on Optimal Operation of Power Generation and Consumption for Enterprises with Captive Power Plants Participating in Power Grid Supply–Demand Regulation

“…Therefore, developing and utilizing demandside resources to participate in power grid supply-demand regulation has become an important task [2]. High-energy-consuming enterprises, which require a large amount of electricity during the production process, possess abundant adjustable resources and constitute an important part of demand-side resources [3,4]. These enterprises typically have captive power plants (CPPs) that generate electricity based on their load scale and production schedule [5,6].…”

Sizing Batteries for Power Flow Management in Distribution Grids: A Method to Compare Battery Capacities for Different Siting Configurations and Variable Power Flow Simultaneity

“…These developments are expected to increase the magnitude and simultaneity (or coincidence factor) of electricity flows on the distribution grid (DG), resulting in higher and longer sustained peak power flows [4,5]. Residential power flows in particular are expected to become the largest contributor to peak power flows in the electricity grid [6], and residential power flow simultaneity (PFS) is expected to increase from 20-30% to 40-90% in the coming years [5,7]. This development is expected to result in grid components becoming overloaded more frequently, leading to faster grid component degradation and the potential for more local power outages [8,9].…”