A New Definition of Demand Response in the Distributed Energy Resource Era

TL;DR

This paper revisits the concept of demand response in the context of distributed energy resources, proposing a new definition to better leverage its potential in modern decentralized power systems.

Contribution

It surveys existing definitions, identifies their shortcomings, and introduces a new, more suitable definition for demand response in the era of distributed energy resources.

Findings

Existing definitions are inadequate for modern decentralized systems

The new definition improves demand response utilization

A research agenda addresses barriers and enablers

Abstract

Demand response is a concept that has been around since the very first electric power systems. However, we have seen an explosion of research on demand response and demand-side technologies in the past 30 years, coinciding with the shift towards liberalized/deregulated electricity markets and efforts to decarbonize the power sector. Now we are also seeing a shift towards more distributed/decentralized electric systems; we have entered the era of "distributed energy resources," which require new grid management, operational, and control strategies. Given this paradigm shift, we argue that the concept of demand response needs to be revisited, and more carefully/consistently defined to enable us to better utilize this massive resource for economic, technical, environmental, and societal aims. In this paper, we survey existing demand response definitions, highlight their shortcomings, propose a new definition, and describe how this new definition enables us to more effectively harness the value of demand response in modern power systems. We conclude with a demand response research agenda informed by a discussion of demand response barriers and enablers.