Sustainability Language

Energy & Transition

Demand side management

Utility programmes that plan, implement and monitor activities to encourage consumers to modify their level and pattern of electricity use.

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Definition

Demand side management comprises the planning, implementation and monitoring of electric-utility activities designed to encourage consumers to modify their level and pattern of electricity usage (US EIA definition). DSM spans energy-efficiency programmes, load shifting, peak shaving, time-of-use tariffs and demand response — the latter being the event-driven, short-term subset of DSM.

References

Overview

What it means

Managing the demand side of the grid as a resource, so supply need not grow in lockstep with consumption.

How it is used

Utilities run DSM programmes to defer generation and grid investment, integrate variable renewables, and lower system costs; regulators evaluate programme cost-effectiveness.

Why it matters

As electrification and renewables grow, flexible and efficient demand is a decarbonisation resource comparable to new supply — and usually cheaper.

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