There are many definitions of DSM and Demand Response, Demand Response is a new name possibly the most charming for the Demand Side Management - DSM. The proponents of the Demand Response argue that the two terms are not necessarily equal. May be Demand Response can be only one new piece of DSM, but the two methods provides for smarter energy use and more efficient operation.

But the Demand Response is not energy efficiency as its main target, although Demand Response programs can serve as a complement to the efforts of energy efficiency. Demand Response is different from energy efficiency, but Demand Response does not primarily aim to save energy, you only respond, if you want, when provoked while DSM can be mandatory or voluntary membership.

DSM programs have energy efficiency as its primary goal, but programs such as Demand Response have two main goals:

  1. Economic benefits -- for the consumer and the utility.
  2. Customer satisfaction and improve the reliability of the entire power system.
Improve the service provided to customers is a primary goal of Demand Response programs, consumers have the opportunity to save money by shifting their energy consumption over time for the energy use of lower price of the day.

The success of this program is the fact that it was designed from the ground up with customer focus as the only priority. Response to Demand for residential work, the utility must provide a tariff structure that encourages customers to change their consumption habits, and the program must be understandable and easy to use.

The flaws in the supply side of the electric power industry may be relieved temporarily, with the randomness of supply and demand becomes necessary to maintain the Demand Response programs in place as an aid to security and system reliability.

Demand Response can be part of the solution to the problems associated with deficits in energy generation, and can help alleviate the lack of capacity of Transmission and Distribution. Demand Response is not just a fad, it's here to stay.

The negotiation of Demand is based on customer demand, the ability of consumers to respond to price changes in the short term - as the next day or hours in advance -- or from one region to the energy supply capacity by reducing demand at times appropriate.

The negotiations on Demand Response projects with customer, promises a substantial increase in efficiency, stability and reliability of the energy sector.

The negotiations that recognize the value of time in energy use can be used to help optimize the balance between Supply and Demand, encouraging clients to actively engage.

Demand Response programs become important to manage price and risk, as are a link between the wholesale energy markets and also at retail.

The Load profile of the residential consumer and the ability to restrict energy use can vary greatly, but the aggregation of its reductions provides a highly reliable resource for planners in the energy market.

The definition of trade in energy demand is based on conventional demand response approaches such as voluntary programs, demand bidding, the cutting options and pricing in real time.

Trading Demand provides a wide avenue for the provision of resources to view, such a response in the regional energy markets through a variety of marketing tools.