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With a gradual increase of electricity demand and high penetration of renewable energy resources to electrical power grid, the demand response (DR) program is emerging as an alternative to reduce peak power and increase the power system stability. This study provides an analysis of data from a DR pilot project in which 140 appliances were participated. We proposed a customer baseline load (CBL) estimation method without historic power consumption data, and calculated peak reduction effects of smart appliances. Moreover, we analyzed the average respond success rate, and investigated the effectiveness respond signal. In addition, an economic assessment of smart appliances (S/A) DR for 1GW peak reduction is performed based on the data from the pilot project. We evaluate the benefits from the application of S/A DR in the utility and participant perspective. While participant’s benefit is an incentive from the reduction of power consumption, the utility’s benefits can include deferral effects of the generation capacity and delay of transmission and distribution infra construction. Also sensitivity analysis according to various factors that affect the benefit cost ratio of the project is performed. Finally, we proposed a moderate incentive program which can attract the customer to participate the DR project.
