Demand side management in smart grid: A review and proposals for future direction

•An overview, drivers and benefits for demand side management in smart grid.•Review of demand side management techniques seen in literature.•We model a novel technique where load responds to price.•Learn the behaviour and control load using price signal.•This increases efficiency, reduces carbon emissions and cuts down costs.

This paper mainly focuses on demand side management and demand response, including drivers and benefits, shiftable load scheduling methods and peak shaving techniques. Demand side management techniques found in literature are overviewed and a novel electricity demand control technique using real-time pricing is proposed. Currently users have no means to change their power consumption to benefit the whole system. The proposed method consists of modern system identification and control that would enable user side load control. This would potentially balance demand side with supply side more effectively and would also reduce peak demand and make the whole system more efficient.