demand side management (smart grid) (DSM)
Demand side management(DSM) or load management is about the load control of electricity consumption in DC grids, in smart grids or in microgrids, the intelligent electricity grids. Load management applies equally to companies, commercial enterprises and households and aims to encourage customers to switch on high-consumption systems or household appliances when electricity tariffs are favorable.
Electricity rates are subject to the fluctuating and unpredictable energy feeds from wind and photovoltaic plants and are most favorable when there is excess energy that is dissipated either by consumption or by storage in energy storage systems. In contrast, electricity rates are highest during peak consumption and low energy feed-in.
In industrial and commercial operations, load management can generally not be based on tariffs, but only on production and work processes. Therefore, load management is limited to cost savings in households, and there only to high-consumption household appliances that can be switched on and off using smart metering. Various electrical appliances that are vital for security or medical care are excluded from load control anyway.
Demand side management involves thinking of different electricity tariffs based on usage. Time of Use( TOU) is one such tariff that provides an incentive for balancing peak and off-peak times, or Critical Peak Pricing( CPP), which can be used to respond to critical grid situations and reduce grid peaks. And Realtime Pricing( RTP), which can be used to respond to capacity bottlenecks, energy surpluses and incorrect forecasts.