This is beneficial particularly when the wholesale price is high.

In this sense, instead of procuring energy

at high prices, retailers make their customers curtail their loads [4].

Price-based DRs programs like Time of Use (TOU) , Critical Peak Pricing (CPP) , Extreme Day Pricing
(EDP) and Real Time Pricing (RTP) are the most common DR programs which are used as to make the
customers shift their use of electricity from a high demand periods to low demand periods of the day by
charging different prices depending on the time of consumption [5].

Incentive-based DRs programs put the customer’s load under control of the system operator. This latter
reduces loads when the system reliability is jeopardized, or the market price is high. In return, the
participants receive bonuses on their bills rates. Direct load control and curtaible rates are example of
incentive-based DR programs [2].

2.7 DR examples and statistics in north America :

There is a plethora of DRs program offers in U.S. and Canada, in wholesale and retail markets here are
some examples.

2.7.1 DRs in Ontario :

2.7.1.1 McMaster University
The Independent Electricity System Operator (IESO) of Ontario allows aggregators to manage demand
response programs. One noticeable DR program is run by the aggregator ENBALA which control the
temperature of a 16,000 t cooler of the HVCA at McMastert University with the help of platform called
GOFLex. The load at McMaster is communicate with GOFLex and receives real-time requests from
ENBALA to reduce its electricity consumption when need arises [6].

2.7.1.2 City of Toronto :

The city has 22 city-owned locations that participate in DRs programs with IESO. The city generated more
than 2 million dollars revenue (up to now ) [7].

2.7.2 Other IESO Demand Response Pilot

IESO has signed contracts for the DR projects in Table 1 [8].