In relation to energy production and consumption demand response management means two things:
- The "response side" is the supply side, i.e. the electricty companies who feed electricity into the electricity grid.
- The "demand side" is formed by the consumers who demand electricty from the grid.
Both sides have to be balanced. In order to achieve the balance different mechanisms have to be used for the short-term and the long-term. In the short term demand by large consumers can be adjusted, or fast energy storage technologies (batteries) may be used. In the medium term electricity may be produced or consumed by (pumped storage) hydropower. In the long-term power plants may be switched on or off.