Demand-side management (DSM) programs consist of the planning, implementing, and monitoring activities of electric utilities

which are designed to encourage consumers to modify their level and pattern of electricity usage.

In the past, the primary objective of most DSM programs was to provide cost-effective energy and capacity resources to help
defer the need for new sources of power, including generating facilities, power purchases, and transmission and distribution capacity
additions. However, due to changes that are occurring within the industry, electric utilities are also using DSM as a way to enhance
customer service. DSM refers to only energy and load-shape modifying activities that are undertaken in response to utility-administered
programs. It does not refer to energy and load-shape changes arising from the normal operation of the marketplace or from
government-mandated energy-efficiency standards.

Demand-side management involves reducing electricity use through activities or programs that promote electric
energy efficiency or conservation, or more efficient management of electric energy loads. These efforts may:

Promote high efficiency building practices

Promote the purchase of energy-efficient ENERGY STAR products

Encourage the transition from incandescent lighting to more efficient lighting technologies

Encourage customers to shift non-critical usage of electricity from high-use periods to after 7 p.m. or before
11 a.m.

Consist of programs providing limited utility control of customer equipment such as air conditioners

Promote energy awareness and education

Wikipedia Definition
Energy demand management, also known as demand-side management (DSM) or demand-side
response (DSR), is the modification of consumer demand for energy through various methods such
as financial incentives and behavioral change through education. Usually, the goal of demand side
management is to encourage the consumer to use less energy during peak hours, or to move the
time of energy use to off-peak times such as nighttime and weekends. Peak demand management
does not necessarily decrease total energy consumption, but could be expected to reduce the need
for investments in networks and/or power plants for meeting peak demands. An example is the use
of energy storage units to store energy during off-peak hours and discharge them during peak
hours. A newer application for DSM is to aid grid operators in balancing intermittent generation
from wind and solar units, particularly when the timing and magnitude of energy demand does not
coincide with the renewable generation.The term DSM was coined following the time of the 1973
energy crisis and 1979 energy crisis. Governments of many countries mandated performance of
various programs for demand management. An early example is the National Energy Conservation
Policy Act of 1978 in the U.S., preceded by similar actions in California and Wisconsin. Demand
Side Management was introduced publicly by Electric Power Research Institute (EPRI) in the 1980s.
Nowadays, DSM technologies become increasingly feasible due to the integration of information
and communications technology and the power system, resulting in a new term: smart grid.,
Energy demand management, also known as demand-side management (DSM) or demand-side
response (DSR), is the modification of consumer demand for energy through various methods such
as financial incentives and behavioral change through education. Usually, the goal of demand side
management is to encourage the consumer to use less energy during peak hours, or to move the
time of energy use to off-peak times such as nighttime and weekends. Peak demand management
does not necessarily decrease total energy consumption, but could be expected to reduce the need
for investments in networks and/or power plants for meeting peak demands. An example is the use
of energy storage units to store energy during off-peak hours and discharge them during peak
hours. A newer application for DSM is to aid grid operators in balancing intermittent generation
from wind and solar units, particularly when the timing and magnitude of energy demand does not
coincide with the renewable generation.The American electric power industry originally relied
heavily on foreign energy imports, whether in the form of consumable electricity or fossil fuels that
were then used to produce electricity. During the time of the energy crises in the 1970s, the
federal government passed the Public Utility Regulatory Policy Act (PURPA), hoping to reduce
dependence on foreign oil and to promote energy efficiency and alternative energy sources. This
act enforced utilities to obtain the cheapest possible power from independent power producers,
which in turn promoted renewables and encouraged the utility to reduce the amount of power they
need, hence pushing forward agendas for energy efficiency and demand management.The term
DSM was coined following the time of the 1973 energy crisis and 1979 energy crisis. Governments
of many countries mandated performance of various programs for demand management. An early
example is the National Energy Conservation Policy Act of 1978 in the U.S., preceded by similar
actions in California and Wisconsin. Demand Side Management was introduced publicly by Electric
Power Research Institute (EPRI) in the 1980s. Nowadays, DSM technologies become increasingly
feasible due to the integration of information and communications technology and the power
system, new terms such as Integrated Demand-Side Management (IDSM), or smart grid., Energy
demand management, also known as demand-side management (DSM) or demand-side response
(DSR), is the modification of consumer demand for energy through various methods such as
financial incentives and behavioral change through education. Usually, the goal of demand side
management is to encourage the consumer to use less energy during peak hours, or to move the
time of energy use to off-peak times such as nighttime and weekends. Peak demand management
does not necessarily decrease total energy consumption, but could be expected to reduce the need
for investments in networks and/or power plants for meeting peak demands. An example is the use
of energy storage units to store energy during off-peak hours and discharge them during peak
hours. A newer application for DSM is to aid grid operators in balancing intermittent generation
from wind and solar units, particularly when the timing and magnitude of energy demand does not
coincide with the renewable generation.The American electric power industry originally relied
heavily on foreign energy imports, whether in the form of consumable electricity or fossil fuels that
were then used to produce electricity. During the time of the energy crises in the 1970s, the
federal government passed the Public Utility Regulatory Policy Act (PURPA), hoping to reduce
dependence on foreign oil and to promote energy efficiency and alternative energy sources. This
act enforced utilities to obtain the cheapest possible power from independent power producers,
which in turn promoted renewables and encouraged the utility to reduce the amount of power they
need, hence pushing forward agendas for energy efficiency and demand management.The term
DSM was coined following the time of the 1973 energy crisis and 1979 energy crisis. Governments
of many countries mandated performance of various programs for demand management. An early
example is the National Energy Conservation Policy Act of 1978 in the U.S., preceded by similar
actions in California and Wisconsin. Demand Side Management was introduced publicly by Electric
Power Research Institute (EPRI) in the 1980s. Nowadays, DSM technologies become increasingly
feasible due to the integration of information and communications technology and the power
system, new terms such as Integrated Demand-Side Management (IDSM), or smart grid., Energy
demand management, also known as demand-side management (DSM) or demand-side response
(DSR), is the modification of consumer demand for energy through various methods such as
financial incentives and behavioral change through education. Usually, the goal of demand side
management is to encourage the consumer to use less energy during peak hours, or to move the
time of energy use to off-peak times such as nighttime and weekends. Peak demand management
does not necessarily decrease total energy consumption, but could be expected to reduce the need
for investments in networks and/or power plants for meeting peak demands. An example is the use
of energy storage units to store energy during off-peak hours and discharge them during peak
hours. A newer application for DSM is to aid grid operators in balancing intermittent generation
from wind and solar units, particularly when the timing and magnitude of energy demand does not
coincide with the renewable generation.The American electric power industry originally relied
heavily on foreign energy imports, whether in the form of consumable electricity or fossil fuels that
were then used to produce electricity. During the time of the energy crises in the 1970s, the federal
government passed the Public Utility Regulatory Policy Act (PURPA), hoping to reduce dependence
on foreign oil and to promote energy efficiency and alternative energy sources. This act enforced
utilities to obtain the cheapest possible power from independent power producers, which in turn
promoted renewables and encouraged the utility to reduce the amount of power they need, hence
pushing forward agendas for energy efficiency and demand management.The term DSM was coined
following the time of the 1973 energy crisis and 1979 energy crisis. Governments of many
countries mandated performance of various programs for demand management. An early example
is the National Energy Conservation Policy Act of 1978 in the U.S., preceded by similar actions in
California and Wisconsin. Demand Side Management was introduced publicly by Electric Power
Research Institute (EPRI) in the 1980s. Nowadays, DSM technologies become increasingly feasible
due to the integration of information and communications technology and the power system, new
terms such as Integrated Demand-Side Management (IDSM), or smart grid.
 Demand Side Management

Electrical energy cant be stored cheaply or in great quantities. Therefore supply and demand has to be balanced
simultaneously. To ensure sustenance of supply, the total capacity of electricity generation must be larger than the
maximum demand. During the past years, the demand for electricity is rising every year. The economic cost and
environmental impact to build new power plants to satisfy the rising demand will be very expensive.

Demand Side Management (DSM) techniques provide variety of measures to reduce energy consumption, which
leads to more manageable demand.

Definition

Its the process of managing energy consumption to optimise available and planned resources for power generation.
DSM incorporates all activities that influence customer use of electricity and results in the reduction of the electricity
demand, which are mutually beneficial to the customers and the utility.

Forms of DSM

Any DSM technique implemented may result in one of the forms of demand reduction:

Peak Clipping refers to the reduction of utility loads during peak demand periods. This can delay the need for
additional generation capacity. The net effect is a reduction in both peak demand and total energy consumption.
Peak clipping can be achieved by direct control of customers appliances.

Conservation refers to reduction in consumption by consumers. There is net reduction in both demand and total
energy consumption. Strategic conservation can be implemented by motivating customers to use more energy-
efficient appliances.

Load Shifting involves shifting loads from on-peak to off-peak periods. The net effect is a decrease in peak
demand, but not change in total energy consumption.

DSM techniques

Direct load control

 Load limiters

Commercial/industrial programs

Frequency regulation

Time of use pricing

Demand bidding

Smart metering and appliances

DSM benefits to the sector

Improving overall energy efficiency

Improving reliability and quality of power supply

Improving efficiency in transmission and distribution networks infrastructure investments and operations

Reducing the risk of power shortages

Saving capital investment to build new power plants

Delivering energy to consumers more economically

Saving the environment