Demand Response (DR) is getting the focus of the energy efficiency directives in European energy commission. It counts as an important instrument for improving efficiency of the energy system from final consumption to generation, transmission and distribution system. Integration of the DR into the electricity market is one of the measures which can take part in ensuring the reliability and security of the energy system in near future. In this regard various methods and tools developed to analyze the effect of DR in the different domains which range across voltage regulation, regulating reserve, market efficiency and transmission congestion management. This paper will not introduce a new method but will analyze the potential of DR in Austrian residential sector using GridLAB-D. A case-study generator is developed to generate any desired test cases and the results were analyzed in order to assess the residential demand response potential.