Demand side management (DSM) refers to the targeted adjustment of energy consumption by households, businesses, or public institutions to relieve the power grid, reduce costs, and improve the energy efficiency of buildings. This is essential as energy demand continues to rise and our energy system increasingly relies on volatile renewable energies. By strategically reducing or increasing the electricity consumption of heating, cooling, and ventilation systems based on market signals and consumption control incentives (e.g., dynamic electricity tariffs) and through the intelligent use of energy storage, the balance of supply and demand can be actively managed on the consumer side.
In the building sector, there are various strategies for controlling electricity consumption through DSM. These include load shifting and peak shaving. Cloud solutions for digital operational optimization can support this process in a data-driven manner. Automated analyses centrally capture and process building data to understand energy consumption patterns and derive strategies for optimizing energy flows. This enables property owners to reduce their energy costs and even sell self-generated electricity on the market at a profit.
