Demand Response for Peak Load Reduction in a Smart Distribution Network

Abstract

Electricity demand varies greatly through the day, rising to peaks that the network and generation must be sized to meet even though those peaks occur for only a few hours, which is costly and strains the system, and demand response, which encourages consumers to reduce or shift their use at peak times, offers a way to lower the peaks without building more capacity. This study examines demand response for peak load reduction in a smart distribution network and evaluates its effect on the peak demand and the use of the network. A demand-response scheme was applied in which controllable loads were reduced or shifted away from the peak hours in response to a signal, and the load profile was compared before and after, the peak demand, the load factor, and the consumption during the peak hours being assessed. The scheme substantially reduced the peak demand, clipping the highest part of the load and shifting some of it to off-peak hours, so that the daily peak fell while the total energy consumed was largely preserved, merely rearranged in time. The reduction in the peak improved the load factor, the ratio of average to peak demand, indicating more even use of the network, and it relieved the network and generation of the most stressful part of the load. The study shows that demand response effectively reduces peak load and flattens the demand profile in a smart distribution network, deferring the need for additional capacity and improving the use of the existing system, and it discusses the controllable loads and the signals on which the scheme depends.

KEYWORDS: Demand response, Peak load reduction, Smart grid, Load factor, Peak shaving, Load shifting, Distribution network, Demand-side management, Load profile