What does the term "demand-side management" refer to?

The term "demand-side management" specifically pertains to the actions and strategies aimed at managing consumer demand for energy. This involves encouraging consumers to use energy more efficiently and to modify their energy usage patterns, often in response to changes in supply conditions or prices. By implementing various programs such as energy efficiency incentives, time-based rates, and energy conservation campaigns, utilities can effectively control and shape the demand for energy, leading to a more balanced and reliable energy system.

This concept is crucial as it helps utilities avoid the need for additional generation capacity and reduces the overall environmental impact associated with energy production. Through effective demand-side management, consumers can lower their energy bills, and utilities can enhance grid stability, showcasing the importance of managing demand rather than solely focusing on increasing supply or making pricing adjustments.