A Data-Driven Approach for Demand Side Flexibility: Reducing Peak Demand and CO2 Emissions in Smart Grid
DOI:
https://doi.org/10.24237/djes.2026.19303Keywords:
Demand Response , Load Shifting , Clustering Analysis, Time-of-Use Pricing, Carbon Reduction , Smart GridAbstract
The volatility in energy supply and the flexible demand require more efficient demand management techniques. The residential demand response has the ability to provide a promising solution. It becomes difficult to identify as households differ widely in how they utilize electricity and how flexible their usage patterns are. To address this issue, this study suggests a data-driven dual-clustering framework that utilizes both the electricity consumption behaviour and its flexibility potential for targeting residential consumers. Consumption clusters are formed using cluster validity indices that are used along with a majority voting mechanism, while the flexibility clusters are formed using a novel Demand Response Separability Score that emphasizes operational relevance over relying solely on statistical criteria. The cross-cluster analysis of these clusters reveals how consumption patterns relate to flexibility levels and facilitates the identification of most suitable households for the demand response programs. A simulation to achieve demand response is conducted by shifting loads from peak-hour to off-peak periods for selected flexible groups under a time-of-use pricing scheme. The results show that the suggested strategy achieves $12,928.77 saving in the electricity costs and a reduction of 25,857.54 kg in CO₂ emissions over the study period. The proposed framework offers improved practical feasibility by matching DR participation with household-specific flexibility capabilities. The importance of integrating behavioral and operational characteristics in consumer segmentation provides useful information to design demand response program for the efficient, scalable, and sustainable smart grid.
Downloads
References
[1] N. P. Koirala, L. Nyiwul, Z. Hu, R. Al-Hmoud, and D. P. Koirala, “Geopolitical risks and energy market dynamics,” Energy Econ., vol. 150, p. 108814, Oct. 2025, doi: 10.1016/j.eneco.2025.108814.
[2] M. Cavcic, “Middle East conflict: Energy security risks and price shocks as market volatility hits supply chains,” Offshore Energy. Accessed: Mar. 26, 2026. [Online]. Available: https://www.offshore-energy.biz/middle-east-conflict-energy-security-risks-and-price-shocks-as-market-volatility-hits-supply-chains/
[3] “South Korea’s renewable energy pivot can mitigate fossil fuel dependency risks | IEEFA.” Accessed: Jul. 29, 2026. [Online]. Available: https://ieefa.org/resources/south-koreas-renewable-energy-pivot-can-mitigate-fossil-fuel-dependency-risks
[4] “2025_outline.pdf.pdf.” Accessed: Jul. 29, 2026. [Online]. Available: https://www.enecho.meti.go.jp/en/category/whitepaper/pdf/2025_outline.pdf.pdf
[5] “Global Energy Review 2026 – Analysis,” IEA. Accessed: Jul. 29, 2026. [Online]. Available: https://www.iea.org/reports/global-energy-review-2026
[6] M. Wirayuda, I. Baihaqi, and M. Sugihartanto, “Literature Review on LNG Supply Chain Risk Mapping,” Int. J. Bus. Manag. Technol. Soc., vol. 1, pp. 110–117, Jan. 2026, doi: 10.12962/j30254256.v1i2.7928.
[7] IEA, “2026 Energy Crisis Policy Response Tracker – Data Tools,” IEA. Accessed: Jul. 29, 2026. [Online]. Available: https://www.iea.org/data-and-statistics/data-tools/2026-energy-crisis-policy-response-tracker
[8] O. M. Neda, J. Adabi, H. Gholinezhadomran, and M. Marzband, “Machine learning-enhanced coordination of home-microgrids for resource compensation in large-scale energy systems,” Sustain. Cities Soc., vol. 134, p. 106744, Nov. 2025, doi: 10.1016/j.scs.2025.106744.
[9] O. M. Neda, “Adaptive Protection Scheme Using Optimal Coordination of Directional Overcurrent Relays for Active Distribution Networks,” Bul. Ilm. Sarj. Tek. Elektro, vol. 8, no. 1, pp. 165–191, Nov. 2025, doi: 10.12928/biste.v8i1.14954.
[10] M. K. Ekoue, M. Woerman, and C. Clastres, “Intermittency and uncertainty in wind and solar energy: Impacts on the French electricity market,” Energy Econ., vol. 142, p. 108176, Feb. 2025, doi: 10.1016/j.eneco.2024.108176.
[11] H. Sæle, B. H. Bakken, and K. Dalen, “Flexibility as an Enabler for Value Creation: A Norwegian Perspective,” IEEE Power Energy Mag., vol. 24, no. 2, pp. 43–53, Mar. 2026, doi: 10.1109/MPE.2025.3596505.
[12] “Flexibility for a secure and affordable power sector transformation.” Accessed: Mar. 22, 2026. [Online]. Available: https://www.irena.org/Publications/2026/Jan/Flexibility-for-a-secure-and-affordable-power-sector-transformation
[13] M. E. Honarmand, V. Hosseinnezhad, B. Hayes, M. Shafie-Khah, and P. Siano, “An Overview of Demand Response: From its Origins to the Smart Energy Community,” IEEE Access, vol. 9, pp. 96851–96876, 2021, doi: 10.1109/ACCESS.2021.3094090.
[14] O. M. Neda, J. Adabi, M. Marzband, and H. Gholinezhadomran, “Hierarchical energy management system for coordinated operation of multiple grid-tied home microgrids,” Renew. Energy Focus, vol. 56, p. 100766, Mar. 2026, doi: 10.1016/j.ref.2025.100766.
[15] F. Plaum, R. Ahmadiahangar, A. Rosin, and J. Kilter, “Aggregated demand-side energy flexibility: A comprehensive review on characterization, forecasting and market prospects,” Energy Rep., vol. 8, pp. 9344–9362, Nov. 2022, doi: 10.1016/j.egyr.2022.07.038.
[16] V. Cortez, R. Rabelo, A. Carvalho, and V. Pilloni, “Towards Consumer-Oriented Demand Response Systems,” in 2022 7th International Conference on Smart and Sustainable Technologies (SpliTech), Jul. 2022, pp. 1–6. doi: 10.23919/SpliTech55088.2022.9854320.
[17] Q. Huang, R. Gao, and H. Akhavan, “An ensemble hierarchical clustering algorithm based on merits at cluster and partition levels,” Pattern Recognit., vol. 136, p. 109255, Apr. 2023, doi: 10.1016/j.patcog.2022.109255.
[18] A. Rajabi, M. Eskandari, M. J. Ghadi, L. Li, J. Zhang, and P. Siano, “A comparative study of clustering techniques for electrical load pattern segmentation,” Renew. Sustain. Energy Rev., vol. 120, p. 109628, Mar. 2020, doi: 10.1016/j.rser.2019.109628.
[19] S. Biswas and S. A. Abraham, “Identification of Suitable Consumer Groups for Participation in Demand Response Programs,” in 2019 IEEE Power & Energy Society Innovative Smart Grid Technologies Conference (ISGT), Feb. 2019, pp. 1–5. doi: 10.1109/ISGT.2019.8791640.
[20] G. Chicco, R. Napoli, and F. Piglione, “Comparisons among clustering techniques for electricity customer classification,” IEEE Trans. Power Syst., vol. 21, no. 2, pp. 933–940, May 2006, doi: 10.1109/TPWRS.2006.873122.
[21] O. M. Neda, “A Review on Smart Distribution Systems and the Role of Deep Learning-based Automation in Enhancing Grid Reliability and Efficiency,” Bul. Ilm. Sarj. Tek. Elektro, vol. 7, no. 2, pp. 195–205, Apr. 2025, doi: 10.12928/biste.v7i2.13152.
[22] O. M. Neda, “Optimal amalgamation of DG units in radial distribution system for techno-economic study by improved SSA: Practical case study,” Electr. Power Syst. Res., vol. 241, p. 111365, Apr. 2025, doi: 10.1016/j.epsr.2024.111365.
[23] A. Kaur, Y. Kumar, and J. Sidhu, “Exploring meta-heuristics for partitional clustering: methods, metrics, datasets, and challenges,” Artif. Intell. Rev., vol. 57, no. 10, p. 287, Sep. 2024, doi: 10.1007/s10462-024-10920-1.
[24] O. M. Neda, “A dual placement strategy for DG and D-STATCOM units using multi-objective optimization in an Iraqi radial distribution system,” Expert Syst. Appl., vol. 299, p. 130230, Mar. 2026, doi: 10.1016/j.eswa.2025.130230.
[25] O. M. Neda, “A novel WSSA technique for multi-objective optimal capacitors placement and rating in radial distribution networks,” Int. J. Appl. Power Eng. IJAPE, vol. 14, no. 4, pp. 934–950, Dec. 2025, doi: 10.11591/ijape.v14.i4.pp934-950.
[26] C. Simpson, R. J. G. B. Campello, and E. Stojanovski, “Benchmarking of Clustering Validity Measures Revisited,” Stat. Anal. Data Min. ASA Data Sci. J., vol. 19, no. 1, p. e70061, 2026, doi: 10.1002/sam.70061.
[27] M. Jain, T. AlSkaif, and S. Dev, “A Clustering Framework for Residential Electric Demand Profiles,” in 2020 International Conference on Smart Energy Systems and Technologies (SEST), Sep. 2020, pp. 1–6. doi: 10.1109/SEST48500.2020.9203534.
[28] H. Mahmood, T. Mehmood, and L. A. Al-Essa, “Optimizing Clustering Algorithms for Anti-Microbial Evaluation Data: A Majority Score-Based Evaluation of K-Means, Gaussian Mixture Model, and Multivariate T-Distribution Mixtures,” IEEE Access, vol. 11, pp. 79793–79800, 2023, doi: 10.1109/ACCESS.2023.3288344.
[29] J.-W. Xiao, Y. Xie, H. Fang, and Y.-W. Wang, “A new deep clustering method with application to customer selection for demand response program,” Int. J. Electr. Power Energy Syst., vol. 150, p. 109072, Aug. 2023, doi: 10.1016/j.ijepes.2023.109072.
[30] V. Michalakopoulos, E. Sarmas, I. Papias, P. Skaloumpakas, V. Marinakis, and H. Doukas, “A machine learning-based framework for clustering residential electricity load profiles to enhance demand response programs,” Appl. Energy, vol. 361, p. 122943, May 2024, doi: 10.1016/j.apenergy.2024.122943.
[31] J. Enriquez-Loja, B. Castillo-Pérez, X. Serrano-Guerrero, and A. Barragán-Escandón, “Performance evaluation method for different clustering techniques,” Comput. Electr. Eng., vol. 123, p. 110132, Apr. 2025, doi: 10.1016/j.compeleceng.2025.110132.
[32] O. M. Neda, “A hybrid LSTM-XGBoost model for multi-horizon short-term load forecasting in smart power distribution systems,” E-Prime – Nexus Electr. Electron. Intell. Eng., vol. 17, p. 201211, Sep. 2026, doi: 10.1016/j.eprime.2026.201211.
[33] E. Barbierato and A. Gatti, “Decoding Urban Intelligence: Clustering and Feature Importance in Smart Cities,” Future Internet, vol. 16, no. 10, p. 362, Oct. 2024, doi: 10.3390/fi16100362.
[34] Y.-S. Kim, M. K. Kim, N. Fu, J. Liu, J. Wang, and J. Srebric, “Investigating the impact of data normalization methods on predicting electricity consumption in a building using different artificial neural network models,” Sustain. Cities Soc., vol. 118, p. 105570, Jan. 2025, doi: 10.1016/j.scs.2024.105570.
[35] X. Cui, M. Lee, M. N. Uddin, X. Zhang, and V. G. Zakka, “Analyzing different household energy use patterns using clustering and machine learning,” Renew. Sustain. Energy Rev., vol. 212, p. 115335, Apr. 2025, doi: 10.1016/j.rser.2025.115335.
[36] D. T. Kusuma, N. Ahmad, S. S. S. Ahmad, I. B. Sangadji, and Y. Arvio, “An efficient clustering approach in electrical energy consumption patterns,” Bull. Electr. Eng. Inform., vol. 14, no. 2, pp. 1168–1177, Apr. 2025, doi: 10.11591/eei.v14i2.8666.
[37] G. Chicco, “Overview and performance assessment of the clustering methods for electrical load pattern grouping,” Energy, vol. 42, no. 1, pp. 68–80, Jun. 2012, doi: 10.1016/j.energy.2011.12.031.
[38] K. Golalipour, E. Akbari, S. S. Hamidi, M. Lee, and R. Enayatifar, “From clustering to clustering ensemble selection: A review,” Eng. Appl. Artif. Intell., vol. 104, p. 104388, Sep. 2021, doi: 10.1016/j.engappai.2021.104388.
[39] O. M. Neda, “A multi-source data-driven framework for intelligent diagnostics and prognostics of power transformers,” Measurement, vol. 286, p. 122354, Sep. 2026, doi: 10.1016/j.measurement.2026.122354.
[40] B. Peng, B. Cui, X. Ma, and C. Liu, “Data-Driven assessment of demand response potential of residential loads based on LSTM-WGCNA and Customer directrix load,” Energy Build., vol. 356, p. 117101, Apr. 2026, doi: 10.1016/j.enbuild.2026.117101.
[41] M. Muratori, “Impact of uncoordinated plug-in electric vehicle charging on residential power demand - supplementary data.” National Renewable Energy Laboratory - Data (NREL-DATA), Golden, CO (United States); National Renewable Energy Laboratory, p. 3 files, 2017. doi: 10.7799/1363870.
[42] S. Liu, T. Xu, X. Du, Y. Zhang, and J. Wu, “A hybrid deep learning model based on parallel architecture TCN-LSTM with Savitzky-Golay filter for wind power prediction,” Energy Convers. Manag., vol. 302, p. 118122, Feb. 2024, doi: 10.1016/j.enconman.2024.118122.
[43] Z. Fu, K. Novan, and A. Smith, “Do time-of-use prices deliver energy savings at the right time?,” J. Environ. Econ. Manag., vol. 128, p. 103054, Nov. 2024, doi: 10.1016/j.jeem.2024.103054.
[44] “Peak and Off-Peak Electricity: Cheapest Times to Use Energy and Lower Your Bills - A1 SolarStore Magazine.” Accessed: Jul. 30, 2026. [Online]. Available: https://a1solarstore.com/blog/peak-and-off-peak-electricity-cheapest-time-to-use-energy.html
[45] M. Shen and J. Chen, “Optimization of peak-valley pricing policy based on a residential electricity demand model,” J. Clean. Prod., vol. 380, p. 134761, Dec. 2022, doi: 10.1016/j.jclepro.2022.134761.
[46] R. Brännlund and M. Vesterberg, “Peak and off-peak demand for electricity: Is there a potential for load shifting?,” Energy Econ., vol. 102, p. 105466, Oct. 2021, doi: 10.1016/j.eneco.2021.105466.
[47] S. Dahlke and M. Prorok, “Consumer Savings, Price, and Emissions Impacts of Increasing Demand Response in the Midcontinent Electricity Market,” Energy J., vol. 40, no. 3, pp. 243–262, May 2019, doi: 10.5547/01956574.40.3.sdah.
[48] M. Afzalan and F. Jazizadeh, “Residential loads flexibility potential for demand response using energy consumption patterns and user segments,” Appl. Energy, vol. 254, p. 113693, Nov. 2019, doi: 10.1016/j.apenergy.2019.113693.
[49] B. Dey, S. Dutta, S. Saikia, and R. S. Kumar, “An innovative hybrid load shifting and curtailing technique for operating a plug-in hybrid electric vehicle integrated microgrid system in a clean and cost-effective manner,” IET Gener. Transm. Distrib., vol. 19, no. 1, p. e70020, 2025, doi: 10.1049/gtd2.70020.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Seema Pal, Kumar Shantanu, Niraj Kumar Choudhary, Nitin Singh

This work is licensed under a Creative Commons Attribution 4.0 International License.









