IoT-Based Automation of Dynamic Demand Response

Dynamic demand response (DDR) is the process of shifting power consumption towards periods of lower demand based on real-time energy pricing data. It is a flexibility measure utilised in the decarbonisation of the UK’s power system to reduce peak demand. Dynamic time-of-use (dTOU) tariffs, such as Agile Octopus, incentivise DDR by providing half-hourly electricity prices for each day. Through this incentive, households are offered the opportunity to reduce their energy costs by applying DDR to energy-intensive, deferrable loads. This paper presents an open-source, Internet of Things (IoT)-based system designed to automate DDR and streamline its implementation. The system identifies the period of lowest electricity prices and activates a relay during this period each day. For validation, the system was tested over a one-month experiment, which showed that, in a favourable scenario, it could reduce an appliance’s electricity costs by up to 44%. These results highlight the system’s potential to deliver substantial energy cost savings, while also encouraging households to participate in flexibility measures that alleviate pressure on the National Grid.