Moving toward a carbon free energy system has become an objective for many countries nowadays. Among other changes, the electrification of strategic sectors, such as heating and transportation, is inevitable. As a consequence, the current power system load will substantially increase. In this context, the nature of the expected loads (heat pumps, plug-in electric vehicles, etc.) makes the low voltage (LV) networks specially targeted. A promising solution to overcome the challenges resulting from their grid integration is demand response (DR).

This paper introduces a hierarchical structure for controlling the DR of a LV grid. This is designed to maximize the grid utilization, thereby reducing the need for reinforcement; accommodate the maximum number of flexible loads; and satisfy the power and comfort requirements from each of the consumers in the network. The validation of the proposed concept is made using a model of an LV network currently operative in Denmark. The results show that by using the proposed strategy a considerable improvement of the minimum system voltage and a better load distribution is obtained.