HEMSs and enabled demand response in electricity market: An overview

Traditional electricity grid offers demand side management (DSM) programs for industrial plants and commercial buildings; there is no such program for residential consumers because of the lack of effective automation tools and efficient information and communication technologies (ICTs). Smart Grid is, by definition, equipped with modern automation tools such as home energy management system (HEMS), and ICTs. HEMS is an intelligent system that performs planning, monitoring and control functions of the energy utilization within premises. It is intended to offer desirable demand response according to system conditions and price value signaled by the utility. HEMS enables smart appliances to counter demand response programs according to the comfort level and priority set by the consumer. Demand response can play a key role to ensure sustainable and reliable electricity supply by reducing future generation cost, electricity prices, CO2 emission and electricity consumption at peak times. This paper focuses on the review of HEMSs and enabled demand response (DR) programs in various scenarios as well as incorporates various DR architectures and models employed in the smart grid. A comprehensive case study along with simulations and numerical analysis has also been presented.