This explainer outlines the technological and policy levers available to government and the energy sector to give people more choice over power use when it comes to energy demand and supply. It contends that better energy policy to relieve costs to customers is within reach. 

Demand side management is the process of incentivising and enabling customers to reduce their energy use or change their energy consumption patterns from times of high energy demand to times when demand is lower. Demand side management can play a major role in helping to reduce bills, improve electricity system reliability, improve utilisation of expensive network infrastructure and better manage both periods of minimum and peak demand.

The explainer outlines how consumers and governments can save money on electricity with better demand management across the network. It calls for incentives to enable customers to reduce energy use and change energy consumption, simultaneously reducing the demand on the grid and the cost of electricity.

Recommendations 

• Variable energy pricing incentives during off-peak periods.
• Home energy management systems using internet-connected devices to provide live control of energy use.
• Improved standards to enable devices to more easily communicate across a home system.
• Development of grid-friendly electric vehicle (EV) charging solutions.
• Household energy storage solutions for more reliable home power and reduced demand on the grid.
• Virtual power plants, where coordinated distributed solar and battery systems work together to enhance grid stability and provide additional capacity during peak demand.