IoT-Based Automation of Dynamic Demand Response
Abstract
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 highlighted 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.
Fields of Study & Subjects
Smart Grid Energy Management
Smart Grid Security and Resilience
Power Line Communications and Noise
Publication details
- Journal / source
- Hardware
- Publisher
- MDPI AG
- Volume
- 4
- Issue
- 1
- Pages
- 3–3
- Publication date
- 2 February 2026
- Language
- EN