Demand Side Management: Strategies, Drivers, and Barriers in the UK

Demand Side Management 1
DEMAND SIDE MANAGEMENT
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Demand Side Management 2
Abstract
This essay is a report about the application of Demand Side Management (DSM) strategies. It
also analyses the strategies used in DSM, such as Demand Side Response, Distributed Energy
Generation, and Demand Reduction, by examining the drivers and barriers that affect their
implementation. The drivers and barriers are derived from the trends associated with the
regulations in the U.K. The analysis depicts that the DSM strategies are beneficial and are being
implemented in the U.K. despite the barriers.

Demand Side Management 3
Contents
Abstract..........................................................................................................................................1
Introduction....................................................................................................................................3
Demand Side Response..................................................................................................................3
Distributed Generation.................................................................................................................6
Demand Reduction........................................................................................................................8
Conclusion....................................................................................................................................11
Reference List................................................................................................................................12
Introduction

Demand Side Management 4
Demand Side Management (DSM) is used in the implementation of strategies that aid in
saving energy. The amount of electrical energy used in the U.K. is expected to increase due to
the use of electricity in transport and spaces (Woolf et al., 2014). One of the ways of meeting this
increased demand would be the increase of power generation, which would increase the cost of
electricity. Therefore, this demand necessitates the implementation of smart systems, which are
cost effective and energy saving. Through DSM, the use of demand side response, distributed
energy generation, and demand reduction strategies can help to reduce the electrical energy being
consumed. Ultimately, this would reduce the need for more generation of electricity.
Demand Side Response
Demand Side Response (DSR) is a form of energy saving technique. It occurs when
organizations, such as supermarkets and factories, are given incentives to aid in balancing
demand and supply of electrical energy by turning off processes that are non-essential during
peak periods or consuming more energy during off-peak periods when a signal is given
(Heinzelman, 2016). This technique saves energy because demand is reduced. Heinzelman
(2016) states that it would not be viable to increase the supply of electricity during peak periods
since such high demand is only witnessed for a few hours in the year. Therefore, using this
strategy is economical because it will save money for all parties involved. Additionally, the low
demand will ensure there is less pollution compared to increasing the supply of electricity.
Evidently, the use of DSR is beneficial to the consumer and the power generating plant.
Using the demand side response has the following advantages. Firstly, it reduces the cost
of electricity. According to Heinzelman (2016), demand can be reduced using other methods of
electricity generation such as wind and solar. The use of these alternative sources of energy in
the U.K. reduced the cost of electricity by approximately one billion Euros in 2014 (“Wind and