What Is Demand Side Management? | EnergyLink

What Is Demand Side Management?

Demand Side Management (DSM) refers to optimization actions that work to efficiently manage a site’s energy consumption by reducing costs incurred for the supply of electrical energy, which fluctuates with grid charges and general system charges.

According to enelX, this group of actions are designed to modify features of electricity consumption with reference to the overall consumption picture, consumption time profile, contractual supply parameters (contractual power and grid connection parameters) in order to achieve savings in electricity charges. 

With renewable resources being highly penetrable and the decentralisation of production sources, increasingly, grid managers are experiencing issues with the grid being unstable, which causes disruptions to services. This is where DSM comes in. Grid managers can now take advantage of generation and consumption systems that offer “grid-services,” in return for payment, which increases the costs for the electrical system.

Evaluating A Site For Demand Side Management

Evaluating a site for DSM requires in-depth analysis of onsite consumption. Doing this evaluates the nuances of each individual site and determines whether consumption habits are able to be optimized. If it is possible, introducing demand side management will flatten the electricity load curve and play a crucial role in the improvement of grid efficiency and reliability for the site.

Alternative Evaluations

Occasionally a site is not suitable for demand side management, in which case, the following can be evaluated instead:

Once this has been done, the site can acquire an Energy Management System instead, which enelX describes as a dedicated computer system that will: 

  • Monitor and check all the assets involved (consumption site, battery, production systems)
  • Optimise in real time the contribution of the batteries and production systems to cut costs associated with intake from the grid and minimise battery aging
  • Use the assets involved to supply services to the grid.

EnergyLink has ample experience with installing energy management systems and we can provide in-depth analysis to assess a company’s energy needs.

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