Demand Response Architecture: Integration into the Distribution Management System

Demand Response (DR) refers to actions taken by the utility to respond to a shortage of supply for a short duration of time in the future. DR is one of the enablers of the Smart Grid paradigm as it promotes interaction and responsiveness of the customers and changes the grid from a vertically integrated structure to one that is affected by the behavior of the demand side. In Principle, it is possible to perform DR at the substation level for the customers connected to the feeders downstream or at the demand response service provider (aggregator) for the customers under its territory. This would allow for an area based solution driven mostly by the financial aspects as well as terms and conditions of the mutual agreements between the individual customers and the utility. However, as the penetration of DR increases, incorporating the network model into the DR analysis algorithm becomes necessary. This ensures the proper performance of the DR process and achieves peripheral objectives in addition to achieving the target demand reduction. The added value to the DR algorithm by incorporating the model of the distribution network can only be realized if the engine is developed as an integrated function of the Distribution Management System (DMS) at the network control center level. This paper focuses on the demand response architecture implemented at the DMS level and discusses some practical considerations associated with this approach.