Being more than a decade old idea, the Demand-side management (DSM) is among the most vital part of the modern
smart grid. DSM enables the utilities to minimize the gap between the supply and the demand by optimizing their
pattern of user loads. At the same time, it helps them in achieving economic and energy efficient systems by reducing the
peak to average (PAR). The implementation of DSM programs by the utilities could help them in improving their
reliability, power quality, energy, and system efficiency. On the other hand, customers could be use it to improve their
load profile, reduce the peak demands, save energy, and motivate them use more and more renewable energy. Thus,
both the utilities and the consumers get benefitted by the implementation of DSM program in the smart grid. This study
tries to understand the application of energy efficient policies and the demand response techniques with various DSM
strategies. The study mainly focuses on the various characteristics that would lead to effective implementation of DSM
programs with particular attention of the residential energy demand. Also, there will be a focus on enhancement of
energy efficiency leading to more effective policy responses. The researchers could find this study very helpful as it
could be employed to maximize the utility profits, the total load factor, peak demand and also minimize the consumer
usage bills.