Difference between demand response and demand side management
Answers
it;s simple if you distinguish between kW and kWh.
DR is measured in kW reduced (although that can also lead to kWh reduced). It enables peak load problems to be solved either in terms of limitation of supply and/or high cost of supply. A marginal kW saved costs less than a marginal kW supplied.
DSM is measured in kWh reduced (although can also lead to kW reduced at peak times). It enables carbon mitigation goals and reduction in supply side capacity, saving money, carbon and increasing energy security. it also improves consumer resource efficiency overall.
The key thing to understand here is that Demand Response (DR) and DSM (Demand Side Management) are not the same thing, even though they are often used interchangeably. Demand Response refers to programs that encourage participants to make short-term reductions in energy demand. These short-term “responses” are triggered by price signals from the electricity hourly market, or initiated by the TSO or DSO. DR activations can last from a couple of minutes to some hours depending on the DR program, and might include turning off or dimming lighting, adjusting HVAC levels, or shutting down a non-critical manufacturing process. On-site generation and storage systems can also be used to adjust loads drawn from the grid. The key thing to remember is that these are temporary, reactionary measures that keep the grid running optimally and automatically smooth out and peaks or valleys in power supply and demand. Demand Side Management (DSM) is any program that encourages the end user to be more energy efficient – so DR falls under this category, but so do longer-term or permanent energy efficiency measures such as lighting retrofits, building automation upgrades, and HVAC improvements.