Journal of Energy Management and Technology

Journal of Energy Management and Technology

Robust Peak Reduction in Distribution Networks Using Traditional and IoT-Based Demand Response Resources

Document Type : Original Article

Authors
1 Faculty of Electrical and Computer Engineering, University of Tabriz, Tabriz, Iran
2 Faculty of Electrical and Computer Engineering, Head of Energy Systems Research Institute (ESRI), Reliability & Energy Systems Management Research Lab, University of Tabriz, Tabriz, Iran
3 Department of Engineering, East Carolina University, Greenville, NC 27858, USA
Abstract
Abstract: Peak demand management is a significant challenge for power grids, primarily due to constraints in generation capacity and rapidly increasing energy consumption. The emergence of new, energy-intensive loads, such as Bitcoin mining farms, has exacerbated the pressure on power utilities during peak demand periods. To address these challenges, demand response programs have emerged as practical solutions to mitigate peak load problems. This study investigates peak demand reduction through two demand response schemes: Time of Use (TOU), a traditional approach, and Automatic Demand Response (ADR), which has attracted increasing attention recently. Participants in these programs act as demand response resources for distribution companies (DisCos) in managing sustained peak loads. The TOU program is designed for elastic load customers, while ADR is applied to residential users and mining operations. The main contribution of this work is the development of a risk-based integrated scheduling model for Demand Response Resources (DRRs), designed to reduce peak demand cost-effectively across various operational tariff structures . These tariffs include price-based Time-of-Use (TOU) for price-sensitive aggregators and incentive-based ADR structures that provide compensation for residential and mining farm customers. Notably, the ADR strategy utilizes Internet of Things (IoT) technology to control household appliances and temporarily shut down cryptocurrency mining equipment. The proposed components are assessed using a detailed optimization model that accounts for the operator's robusteness toward renewable energy generation in the day-ahead scheduling process.

Keywords: Demand response, ADR, Internet of Things, TOU, Cryptocurrency, Distribution Networks.
Keywords

Subjects


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Volume 9, Issue 4
Autumn 2025
Pages 261-275

  • Receive Date 14 February 2025
  • Revise Date 25 April 2025
  • Accept Date 21 May 2025