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Demand Response in the Global Arena: Challenges and Future Trends

The transformation of conventional grids into smart grids evolves bidirectional communication between the customer and utility. This development intends utility to monitor and modify the energy consumption patterns of the customers by floating various Demand Response Programs (DRPs). DRPs are known to be the most effective solution to the various techno-economic problems of the distribution systems. Moreover, its impact percolates through the entire power system. This paper presents an in-depth overview about definition, importance, implementation and outcomes of DR in modern distribution systems. The paper critically analyses and presents several vital issues, concerns and implications of various DRPs being implemented in practice. The paper also highlights some realistic directives to overcome certain limitations of existing DRPs on account of technical, social, economic and geographical concerns.