ABSTRACT
In a smart grid, demand response (DR) is provided by the demand side that allows end users to adjust their electricity consumption during a given time horizon or to shift the consumption to other time periods, in response to a price signal or other incentives. DR brings economic benefits to consumers by lowering peak hour electricity consumption with high electricity prices. This will cut down locational marginal 194prices (LMPs) and, in turn, retail rates. DR may also prevent cascaded blackouts by offsetting the requirement for more generation and transmission assets.
