IEA DSM Task 17: Integration of Demand Side Management, Distributed Generation, Renewable Energy Sources and Energy Storages

The main objective of the proposed Task is to study how to achieve the optimal integration of distributed generation, energy storages and flexible demand, and thus increase the value of distributed generation and demand response and decrease problems caused by intermittent distributed generation (mainly based on RES) in the physical electricity systems and at the electricity market. The Task deals with distributed energy resources both at local (distribution network and customer) level and at transmission system level where large wind farms are connected.

Short Description


As countries implement energy policies that promote energy efficiency, distributed generation and renewable energy resources, the share of distributed energy increases, particularly the intermittent type such as wind, solar, small hydro and combined heat and power (small and micro-CHP). Due to the fact that intermittent types of electricity generation are difficult to predict, electrical networks-both local and transmission- are turning to integrated distributed energy resource.
By combining distributed generation with energy storage and demand response, countries can decrease problems caused by distributed generation and increase the value of intermittent energy in the market.

This task examines the optimum integration strategies of demand side management measures and distributed generation, renewable energy sources and energy storage in terms of technical and economic aspects.


Intermittent generation like wind can cause problems in grids, in physical balances and in adequacy of power. Solutions to decrease the problems caused by the variable output of intermittent resources are among others to increase flexibility in electricity consumption.


The main objective of this Task is to study how to achieve a better integration of flexible demand with distributed generation and smart grids. This would lead to an increase of the value of Demand Response, Demand Side Management and Distributed Generation and a decrease of problems caused by intermittent distributed generation in the physical electricity systems and at the electricity market.


The first step in the Task was to carry out a scope study, analyzing the information and synthesizing the information to define the more detailed needs for the further work. The extension of the work analyses the quantitative and qualitative effects of high penetrations on the electric distribution system, as well as the interaction of different stakeholders with the energy systems (under country specific aspects, tariffs, incentives and regulations). Investigated technologies are: (hybrid) electric vehicles (PEV/PHEV), heat pumps, photovoltaic and micro-CHP at customer premises.


Electric vehicles and aggregators will play an important role. Controlled charging (smart charging) will be a requirement for a successful integration. Heat pumps are highly suitable for DSM/DR due to the thermal storage. Lacks of standardisation of interfaces and incompatible available devices still have been to overcome. Micro-CHPs are especially efficient where the heat can be also used and have a high potential for using in DR applications.

Photovoltaic systems in combination with energy management systems to increase the self-coverage will become more and more important. Smart Meter are an essential part for enabling the Smart Grid and the active integration of the consumer/prosumer into the market.

Stakeholder participation and effects:

  • The introduction of micro-CHP has significant impact on the number of stakeholders.
  • The prosumer can sell the produced energy via aggregators or provide the flexibility as a service for network operation. Regarding the application it can have positive and negative impact, like the reduction of peak demand or the decrease of incomes.
  • Quantitative effects on the electric power system depend on the investigated case and technology or their combination. It is not possible to make general conclusion, effects have to be analysed in detail.


Several topics have been discussed for further investigations. The role and solutions of so called home energy management systems (HEMS) or customer energy manager systems have been selected.


Project Partners

DI Matthias Stifter
AIT Austrian Institute of Technology
Energy Department, Electric Energy System

Project or cooperation partner

    AIT Austrian Institute of Technology
    Deputy Head of Business Unit, Energy Department, Electric Energy Systems


Austria, Finland (Operating Agent), France, Netherlands, Spain

Contact Address

AIT Austrian Institute of Technology
Geschäftsfeld Erneuerbare Energietechnologien
DI Matthias Stifter
Giefinggasse 2
A-1210 Vienna
Tel.: +43 (0) 50550-6673
Fax: +43 (0) 50550-6613
Mobile: +43 (0) 664 81 57 944