What is Demand-Side Management?
Profound changes are disrupting the energy industry, bringing about new challenges for utilities, system operators and governments around the world: balancing intermittent generation, integrating renewables to meet climate goals, covering peak demand with increased flexibility. These drivers make balancing energy supply and demand more difficult and more expensive than it used to be.
One of the most well-researched fields of electricity system flexibility is called Demand Side Management (DSM), which aims to improve flexibility on the consumer side. The implementation of DSM programs can range from improving energy efficiency with better insulation materials to fully autonomous energy systems that automatically respond to shifts in supply and demand.
DSM can be implemented in two ways: through energy efficiency or Demand Response (DR). Since the RESPOND project focuses on the latter, this post will define and explain the concept of Demand Response in more detail.