Reaching an electricity system which is both economically efficient and environmentally friendly is motivating countries to
design and execute different types of TOU demand response programs. But there are certain deficiencies which prevent these
programs to effectively modify the load shape. Smart grid as a means could help the electricity system to reach the highest
demand side management goals which are inaccessible through today’s methods. In this paper, problems facing today’s demand
response programs have been described and Iran’s recently designed TOU program has been analyzed as an example. The
influence of this program has been simulated on Iran’s actual load curve. As a solution to the problems facing DR programs,
Smart Grid has been introduced and the influence of Real Time Pricing (RTP) program in Smart Grid has been simulated on an
actual load curve of Iran’s grid, using multi period load model and adaptive periods. Reaching market equilibrium and the effect
of Smart Grid on price curve has also been simulated. Finally, the current TOU program designed for Iran and the RTP program
in smart grid have been compared with respect to load shape modification, load factor, price curve, and production cost.
Eventually, savings made possible through smart grid per day have been evaluated.