A survey on residential Demand Side Management architecture, approaches, optimization models and methods

The residential sector is a major contributor to the global energy balance. So far, the residential users demand has been largely uncontrollable and inelastic with respect to the power grid conditions. Demand Side Management (DSM) is an important function in smart grid that allows consumers to make informed decision regarding energy consumption, and helps energy providers to reshape the load profile and to reduce peak load demand. DSM can be mathematically formulated either to maximize the system total peak demand or to maximize overall system load factor and utility׳s revenue and to minimize customer electricity bill. This paper reviews the various optimization techniques applied to DSM as contrasting characteristics like individual users versus cooperative users, deterministic versus stochastic and day-ahead versus real time DSM. This paper reviews a survey on residential DSM, which can help general readers to have an outlook of the topic which includes the architecture, formulation of optimization problems and its various approaches. The issues, existing solutions and approaches are presented. In addition, the future research directions are also discussed to enhance the work in this domain.