Demand response optimization for smart grid integrated buildings: Review of technology enablers landscape and innovation challenges

This paper provides a comprehensive overview and analysis of state-of-the-art technological advancements in building integration in smart grids, with a focus on enabling their participation in demand response (DR). We consolidate knowledge from high-quality sources on the main research topics, helping researchers, building owners, and energy stakeholders to stay informed about the latest developments, trends, and best practices in the field. Our review covers reputable journals papers that offer technological enablers and evidence-based insights on building interoperability, AI-based energy prediction models, demand optimization and coordination, data privacy, and decentralization. Managing buildings in DR requires careful coordination and control, thus we provide valuable insights into current practices and opportunities by examining the EU innovation projects and identifying technological innovation trends that aim to increase resident engagement by addressing regulatory and socio-economic concerns. We also discuss the main barriers to buildings’ participation in DR identifying future research directions in the field and providing mitigation insights to the building owners and grid operators. Our findings indicate that despite their potential building participation is limited due to the absence of a clear regulatory framework and lack of mature technologies to fully support and automate the programs implementation. While AI and optimization technologies show promise for improving demand coordination, challenges such as limited interoperability between buildings and energy grids, privacy concerns, and insufficient financial incentivization significantly limit the building’s participation in DR.