ABSTRACT
This chapter analyzes the research through elaborating a representative number of Demand and Response (DR) methods and discusses future directions. It explains the significance of DR, the traditional DR methods in power grid, and the new requirements of DR in future smart grid. The characteristic and advantages of smart grid technologies require more participation of customers in the DR. The advent of smart grid technologies such as digital communication devices and advanced metering infrastructures facilitates a better environment for sharing information and data more readily among energy consumers and producers. In price-based demand response programs, customers voluntarily adjust their electricity consumption based on time-varying pricing signals, mainly including Time of Use Pricing, Real Time Pricing and Critical Peak Pricing. A representative number of DR methods have been stated, which belong to the customer profit optimization category, operation cost of electric utility reduction category and social welfare maximization category.
