ABSTRACT
Demand Side Response (DSR) consists of techniques, policies and market programmes which are designed to address the problem of peak electrical energy demand. This chapter provides the reader with a definition, a brief history and the necessary classification of peak shifting programmes and the structures of the markets in which they operate. It describes how applications of DSR vary around Europe, the attempts which have been made to quantify the value of DSR, and the financial mechanisms used by energy regulators to increase DSR levels. With regards to categories of services DSR can offer, a typical classification involves two main types: incentive-based programmes and price-based programmes. DSR does not necessarily involve reducing demand, but shifting it in response to variations in supply. In certain spaces, DSR and Demand Side Management (DSM) are used interchangeably. The chapter makes the distinction and sees DSR as a particular form of DSM focusing on load shifting aspects, rather than aggregate conservation effects.
