What is Demand Side Management
Demand Side Management are the procedures put in place to adapt energy consumption from the grid in reaction to electricity price fluctuation
This can sound intimidating but in short it means : "Consume energy when it is cheap, save energy when it is expensive".
What are Demand Response Strategies
There are thousands of different strategies that you can adapt depending on your profile and the state of your energy market. The categories we show here have some overlap but hopefully they will give you a better idea of what you can do.
This is the "buy low" aspect of demand response. One of the best examples of this is the smart use of you HVAC system. Most HVAC systems only adopt their temperature according to basic input such as ambiant temperature or humidity levels. With demand response in mind you can factor in the energy price to lower your consumption during periods of price surges, and the other way around.
A production response consists of producing more electricity when specific events occur. This type of demand response is complex to put into place but can be very powerful. The most basic example which is wide spread is a backup generator which you can activate when the grid shuts down. In more complex situations, you can think about producing electricity to sell to your retailer when the price of electricity is high.
Energy prices can have very wide fluctuations, most users don't notice it because they pay an average at the end of the month or quarter. Like many commodity their is a sport market for electricity. An energy management system can help you detect these fluctuations periods and sell the energy you have to the grid. For example, if you have full batteries and you don't think you will be using them soon, you can unload them to the grid during a price surge and make a good profit. You can use this great tool by AEMO to check the daily fluctuations of the energy market. For example here is a screenshot from 30th August 2019 of the energy price in Victoria.
This category is called business response because they can be influenced by your business practices. Even if there are a lot of short term energy fluctuations of energy prices during the day, there are some long term patterns.
If it is an option for you you can adapt your production rate according to these averages. You can make these changes with daily average prices in mind but also seasonal changes. There is no hard rule here because it all depends on your the profile of your business.
Energy Management Systems and Demand Side Response
Demand side response requires live data to be really effient. You need to confront your energy profile with live energy prices. That is why quality data is essential and having the right automation tools. A commercial building can save on average 20-30% on their energy bills by simply adopting energy monitoring, control and automation systems.