Aggregation of small loads for demand response programs — Implementation and challenges: A review

The concepts of demand response (DR) and demand side management have been in practice by power utilities for many decades. Due to fundamental changes in the electricity structure in recent years, the provision of DR from small loads like residential buildings or electric vehicles has become possible. However, there are still many challenges to the real implementation of DR programs for such customers. Based on a detailed survey of the literature, this paper tries to illustrate the role of aggregators in the implementation and expansion of DR in future smart grids. Then different technical and managerial challenges of DR aggregation for residential customers will be discussed thoroughly.