| Summary: | Inelasticity of demand along with the distributed energy sources and energy market democratization pose significant challenges which have considerable negative impacts on overall grid balance. The need for increased capacity and flexibility in the era of energy market digitalization has introduced new requirements in the energy supply network which could not be satisfied without continuous and costly local power network upgrades. Additionally, with the emergence of Smart Homes (SHs) and Home Energy Management (HEM) systems for monitoring and operating household appliances, opportunities have arisen for automated Demand Response (DR). DR is exploited for the modification of the consumer energy demand, in response to the specific conditions within the electricity system (e.g., peak period network congestion). In order to optimally integrate DR in the broader Smart Grid (SG) system, modelling of the system parameters and safety analysis is required. In this paper, the implementation of STPA (System-Theoretic Process Analysis) structured method, as a relatively new hazard analysis technique for complex systems is presented and the feasibility of STPA implementation for loss prevention on a Demand Response system for home energy management, and within the complex SG context, is examined. The applied method delivers a mechanism useful in understanding where gaps in current operational risk structures may exist. The STPA findings in terms of loss scenarios can be used to generate a variety of safeguards to ensure secure operational control and in implementing targeted strategies through standard approaches of risk assessment.
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