Demand Side Response (DSR)

Key takeaways

• Demand Side Response (DSR) is when a business adjusts its electricity demand in response to a grid signal — often for payment.
• It’s run via aggregators and via National Grid ESO programmes.
• Best fit: sites with flexible loads (batteries, pumps, cold storage, heating, certain processes), accurate metering, and confident load shifting habits already in place.

What is Demand Side Response?

Demand Side Response (DSR) is the broad term for adjusting electricity demand — turning it down, up, or shifting it — in response to a signal from the grid or a market. It’s an alternative to building more generation to meet peak demand.

In GB, businesses participate either directly (large sites) or through aggregators who bundle many smaller sites into a single market-ready resource.

How a business gets involved

1. Identify flexible loads and how much / how fast they can move.
2. Confirm metering is good enough (usually half-hourly).
3. Talk to an aggregator or directly into ESO-run schemes to see what fits.
4. Build a baseline by practising load shifting on the same loads first.

Programmes to know

Balancing services run by National Grid ESO (e.g. frequency response, reserve).

The Capacity Market, which has a DSR route.

Distribution-level flexibility markets run by DNOs in some regions.

Sources

1. NESO — Demand Flexibility Service explained
2. NESO — Capacity Market (EMR delivery body)
3. Energy Systems Catapult — independent UK energy research