Demand Side Management in Industrial, Commercial, and Residential Sectors: A Review of Constraints and Considerations

Baxter Williams (), Daniel Bishop (), Patricio Gallardo and J. Geoffrey Chase
Additional contact information
Baxter Williams: Department of Mechanical Engineering, University of Canterbury, Christchurch 8041, New Zealand
Daniel Bishop: Department of Civil and Natural Resources Engineering, University of Canterbury, Christchurch 8041, New Zealand
Patricio Gallardo: EPECentre, University of Canterbury, Christchurch 8041, New Zealand
J. Geoffrey Chase: Department of Mechanical Engineering, University of Canterbury, Christchurch 8041, New Zealand

Energies, 2023, vol. 16, issue 13, 1-28

Abstract: Demand Side Management (DSM) is a cost-effective approach to managing electricity networks, aimed at reducing capacity requirements and costs, increasing the penetration of renewable generation, and reducing power system emissions. This review article explores the distinctive characteristics of electricity demand in the industrial, commercial, and residential sectors, and their relationship to successful implementation of DSM. The constraints and considerations for DSM are characterized as technical, economic, and behavioral factors, such as process requirements, business operation constraints, and consumer decisions, respectively. By considering all three types of factors and their impacts in each sector, this review contributes novel insights that can inform the future implementation of DSM. DSM in the industrial and commercial sectors is found to be primarily constrained by technical considerations, while DSM in the commercial sector is also subject to economic constraints. Conversely, residential demand is found to be primarily constrained by human behavior and outcomes, highly variable, and the largest contributor to peak demand. This review identifies sector-specific opportunities to enhance DSM uptake. Industrial DSM uptake will benefit from technological and process improvements; commercial DSM uptake can benefit from enhanced economic incentivization; and residential DSM uptake can benefit from improved understanding of the interactions between human behavior, human outcomes, and energy use. Finally, this review investigates behavioral models and concludes that agent-based models are best suited for integrating these interactions into energy models, thereby driving the uptake of DSM, particularly in the important residential sector.

Keywords: demand side management; demand response; power system management; behavioral model; agent-based model; industrial electricity; commercial electricity; residential electricity (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.mdpi.com/1996-1073/16/13/5155/pdf (application/pdf)
https://www.mdpi.com/1996-1073/16/13/5155/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:16:y:2023:i:13:p:5155-:d:1186770

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().