63 RRJET | Volume 5 | Issue 3 | September, 2016 Research & Reviews: Journal of Engineering and Technology ISSN:2319-9873 Methods of Demand Site Management and Demand Response Muhammad Saad* Department of Electrical Power Engineering, Adelaide, Australia Review Article INTRODUCTION The traditional method of supplying electricity to the consumer involved using a limited number of power plants to supply the electricity demand of the consumers. This method worked well till the last decade when volatile renewable energy sources [1] and electro-mobility concepts entered the electricity market. These methods have made the supply of electricity bi-directional and re- quire new sophisticated methods of control to monitor the generation and consumption of electricity [2] . The concept of changing the static nature of the electric load into a dynamic form has been around for a long time but this concept was not implemented until the advent of affordable global communication networks and embedded systems which have allowed a certain degree of “smart” to be implemented in the electrical loads. The development of demand side management has also been driven by the increasing demand of electricity despite increases in effciency of electrical loads. The increasing generation capacity can keep up with the increasing load. However, the main problem being faced now a days is the gird capacity which is reaching its upper limits. This is due to large renewable energy projects such as offshore wind farms in the Northern Sea [3] that are putting a strain on the existing grid system. Due to these reasons intelligent demand side manage- ment (DSM) is needed to increase the capacity of the existing grid. DSM includes everything that is done on the demand side of the power system. This can include such simple things as increasing effciency of a light bulb by replacing an incandescent light bulb with fuorescent light bulb to using sophisticated controllers to dynamically change the load. DSM can be broadly categorized into 4 different categories. Energy effciency (EE), Demand response (DE), Spinning reserve (SR), and Virtual power plants (VPP) are the four effective methods for demand side management and demand response. The effect of these methods on the consumer process can be seen graphically in the (Figure 1) below. The “process” can be defned as a manufacturing process, pump power or even the well- being of the consumer. These 4 different methods are discussed in detail in the following sections. Energy effciency The energy effciency of buildings or industrial areas requires careful planning to fnd out the processes that need optimiza Received date: 03/05/2016 Accepted date: 06/08/2016 Published date: 13/08/2016 *For Correspondence Muhammad Saad, Department of Electrical Power Engineering, Adelaide, Australia E-mail: Saamy005@mymail.unisa.edu.au Keywords: Demand side management, Demand response, Energy effciency, Spinning reserve, Virtual power plants, Energy management. ABSTRACT Electrical power system is one of the most complex and advanced systems in the world. The energy management of such a system from the point of generation and distribution has been optimized but the demand side has only received attention in the last decade. This has led to the implementation of demand side management (DSM) which involves a number of different methods to improve the power system at the demand side. DSM ranges from increasing load effciency by using better materials to implementing smart energy tariffs for different consumption patterns, up to using sophisticated systems to control distributed energy sources. This paper gives an overview of the DSM and discusses in detail the different ways of implementing the DSM in the electrical power system.