Demand response in Saudi Arabia

Demand Response is a useful tool to limit the maximum demand thereby reducing the need of peak power generation units which are normally less efficient and operational for only small time interval. DR enables consumers to manage their consumption according to the available generation which means electric supply is generation oriented rather than demand oriented. Considering the challenges facing Saudi Arabia in electrical sector, demand response initiative can be very beneficial. This paper describes various demand response methods in general followed by the simulation of variable price structure and incentive based methods for possible DR implementation.