Energy demand management, also known as
demand side management (
DSM), 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.