Various demand side management techniques and its role in smart grid–the state of art

The current lifestyle of humanity relies heavily on energy consumption, thus rendering it an inevitable need. An ever-increasing demand for energy has resulted from the increasing population. Most of this demand is met by the traditional sources that continuously deplete and raise significant environmental issues. The existing power structure of developing nations is aging, unstable, and unfeasible, further prolonging the problem. The existing electricity grid is unstable, vulnerable to blackouts and disruption, has high transmission losses, low quality of power, insufficient electricity supply, and discourages distributed energy sources from being incorporated. Mitigating these problems requires a complete redesign of the system of power distribution. The modernization of the electric grid, i.e., the smart grid, is an emerging combination of different technologies designed to bring about the electrical power grid that is changing dramatically. Demand side management (DSM) allow customers to be more involved in contributors to the power systems to achieve system goals by scheduling their shiftable load. Effective DSM systems require the participation of customers in the system that can be done in a fair system. This paper focuses primarily on techniques of DSM and demand responses (DR), including scheduling approaches and strategies for optimal savings