Due to increasing penetration in renewables in the grid, it has become increasingly necessary to provide a balance between supply and demand. Demand side management, especially in residential buildings, could play a vital role in providing this balance. They have a massive untapped potential which could support the grid of the future. These flexible loads could also help enhance the grid reliability and support system stability. A 500-house residential building system is created and simulated using a tool called GridLAB-D to estimate the potential of demand response from these residential buildings. The detailed model has the capability of controlling each individual end-use appliance. Impacts of rebound effects and methods to mitigate these rebound effects are also discussed. The primary aim of this thesis is to provide a methodology for estimating various value streams of demand response. Apart from peak reduction, demand response can provide several other functionalities. To assess the benefits, the residential building system is connected to an IEEE distribution test system. Finally, a framework is developed for evaluating the feasibility, viability, costs and benefits of the demand response programs.
