Residential Sector Demand Side Management: A Review

Demand-side management (DSM) plays a significant function in the smart distribution system to make informed decisions from both the consumer and supplier side with regards to energy consumption to redesign the load profile and to decrease the peak load demand. This study extensively reviews the demand-side management (DSM) strategies along with both demand response and energy efficiency policies. The major objective of this paper is to enumerate the relevant features responsible to strengthen the DSM effectively, particularly for residential energy demand and the limits to energy indicators. Secondly, the large untapped and hidden potential and the associated barriers to energy efficiency enhancement are focused and surveyed for formulating a better number of potential policy responses. This further explores the portfolio approach with bundled strategies to reflect on the power market through enhancing the strength of individual residential measures through complementary policies to reduce the weaknesses. This concludes at last with the findings of possible holistic measures related to various approaches and attributes findings that reinforce the DSM strategies to enhance energy management and cost-effectiveness. Apart from that the architecture, formulation of optimization problems, and various approaches are presented to help the readers to develop research in this direction to maximize the total system peak demand, overall load factor, and utility revenue with the minimized customer electric bill.