You have worked for several years on demand response management (DRM). Could you explain the concept to someone who is not familiar with it?
Demand Response refers to the adjustment of a customer’s generation or consumption in response to external signals, such as grid conditions or market prices. Because electricity supply and demand must always be balanced on the grid, managing electricity consumption is crucial to maintaining system stability.
I often use the analogy of the grid compared to a road network: there are "rush hour" periods when many people are using electricity at once, creating congestion and straining the system. If highway toll prices are higher during rush hour, it will encourage some people to travel before or after peak times.
Demand response is traffic flow management on the grid. It can work through price signals, which nudge customers to shift their usage behaviour, or through automated control, where enrolled devices are managed directly to respond to real-time grid needs. There are even periods of surplus renewable generation when electricity consumption is encouraged.
Can any type of consumers participate in demand response programmes or are there specific conditions that must be met? And more importantly, what are the key benefits for participants?
All types of consumers can participate in demand response programmes, providing these programmes are offered by their local energy provider, and they have the necessary enabling technologies.
One of the most critical enablers is smart metre infrastructure. Smart metres allow utilities or aggregators to monitor and verify changes in electricity production and consumption.
Demand response takes several forms. Behavioural programmes, for example, use time-based pricing signals to encourage customers to shift their energy use. These programmes are relatively simple to implement but depend heavily on customer awareness and voluntary behaviour changes. In contrast, automated demand response involves enrolling compatible devices such as smart thermostats or electric vehicle chargers that can respond to grid signals.
Participants in demand response programmes can receive a range of incentives. Traditionally, utilities offered bill credits or rebates, but newer approaches include gift cards, loyalty rewards, and even donations to charitable causes. In many cases, utilities also provide free or subsidised smart devices, helping lower the entry barrier for customers while simultaneously enhancing grid flexibility.
Would you consider DRM a “missing link” in achieving a successful and resilient energy transition? Why or why not?
There is no silver bullet for a successful energy transition. Given the unprecedented scale of this transition, it requires many interconnected solutions working towards a common goal. One critical piece of this puzzle is demand-side management, which plays a key role in creating a more flexible, responsive grid and enabling the seamless integration of variable renewable energy.
In the past, grid operators could simply dispatch supply to match fluctuations in demand. But as a growing share of our electricity comes from variable sources like wind and solar, new challenges are emerging around grid stability and system inertia. To address these issues, we need to modernise our energy systems by enabling a more flexible demand.
As an alumna and now lecturer in the Master in Global Energy Transition and Governance, have you noticed any changes in how students engage or prioritise DRM over years?
When I studied at CIFE in 2021, demand response was barely on the radar. While conducting research for my thesis, I struggled to find relevant studies or reports on the topic. Since graduation, I've returned each year to deliver a guest lecture on demand response, and I always start by asking the class if they have heard of the term. I was pleasantly surprised this year when I polled the class and over half the students were already somewhat familiar with the concept. It’s a promising sign that the value of grid flexibility is starting to gain the recognition it deserves.
If you were a student today working on a master thesis on demand response, how would you approach the topic? What advice would you give to the next cohort exploring this area?
My key advice to students today would be to narrow the focus as much as possible. Choose a specific country or market, a particular type of demand response (such as residential, commercial, or industrial), or even zoom in on a single technology or load type, like electric vehicle charging or HVAC (heating, ventilation and air-conditioning) systems. This makes the research more manageable for the scope of a master thesis.
There’s also a growing body of literature available now that wasn’t as accessible just a few years ago. Reports from utilities, regulatory agencies, NGOs, and market operators can be incredibly insightful. Use these to build your foundation and identify where there are still gaps or emerging questions worth exploring.
Another promising angle is consumer behaviour, for example, exploring how much inconvenience or flexibility customers are willing to accept in exchange for financial incentives, sustainability benefits, or improved energy security.
Lastly, I’d recommend staying grounded in real-world applications. Talk to stakeholders if you can, whether utilities, aggregators, or policymakers. Understanding how demand response works in practice, and what the barriers and opportunities are, will not only strengthen your thesis but also make your work more impactful.