Demand management is employed by energy supply companies to reduce the need for infrastructure upgrades by encouraging consumers to use less energy during peak hours, to move energy use to off-peak or to decrease the overall energy consumed.
To design effective demand management programs, energy supply companies need to understand how different approaches are best used either separately or in concert to deliver sustainable changes in customer energy use.
Reliable information is needed on the costs and efficacy of different approaches, in order to develop a clear business case for investment. In 2011, ClimateWorks and Ergon Energy collaborated on the development of a ground-breaking methodology to evaluate and compare demand management programs that encourage the uptake of energy efficient technologies or changes in consumer behaviour.
Ultimately, the aim of these programs is to reduce or postpone the need for costly electricity infrastructure upgrades.