Demand Response Systems for Smart Cities

This utilities market tool can help governments tackle demand-supply gaps

Demand response (DR) is a tool deployed in electricity markets to overcome temporary real-time mismatches in supply and demand. DR is most useful when demand needs to be managed, as increasing the supply is not always viable in the short or long term.

Even the best IoT-enabled infrastructure can come under stress during short periods of peak demand. An example would be the strain on public transportation during, say, a fireworks display. DR can help ensure the best services during such situations. Smart cities can hence use this tool to improve efficiency, reduce costs and operate more sustainably.

This white paper presents a simplified DR architecture, explores possible use cases for DR in a smart city and presents the architecture for a smart city operation that includes DR.