Chapter 01 · Climate & transitionEnergy & Transition
Demand side management
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
official definition
DSM vs demand response distinction
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.