Energy demand management, also known as demand-side management or demand-side response, is the modification of consumer demand for energy through various methods such as financial incentives and behavioural change.
Demand Side Management (DSM) provides grid operators with the opportunity to improve efficiency and stability of the power grid by flattening the electricity load curve and will play a crucial role in the improvement of grid efficiency and reliability for years to come.
It comprises techniques and policies which aim at equalizing energy consumption levels over the day. As opposed to the supply side management involving the addition of new generation units and total installed capacity, the idea here is not only to increase the energy to be supplied, but also to control the shape of consumption by applying energy management techniques. The main challenge in the implementation of a DSM program is the quest for knowledge of the daily behaviour of loads in the electrical system, which is generally not available from the systems based on conventional electromechanical meters.
Improving end-use energy efficiency to meet the ever-increasing electricity demand in India is the most economical option available to us today. Part of the end-use demand could be met without having the need to increase the supply, thereby reducing the costly power procurement for DISCOMs. These benefits have led to some Demand Side Management (DSM) activities in the state as well as at the national level. State governments, DISCOMs, state-designated agencies, BEE, electricity regulators have undertaken several activities to promote DSM.