- Demand side management (DSM) with thermal storage enables industrial companies to adjust energy consumption to price signals and renewable generation without disrupting production.
- By decoupling electricity procurement and heat use, companies can target low-price periods, avoid peak loads and cut energy costs.
- Digital energy management systems provide the analytical backbone to control storage intelligently and make strategic use of price fluctuations.
Industrial companies with high energy demand face growing pressure to make their operations not only efficient but increasingly flexible. As renewables account for a larger share of the power mix, the balance between supply and demand is becoming more dynamic. DSM is gaining strategic importance in this context. It allows companies to align their energy use more closely with power system conditions.
The goal isn’t to participate in electricity markets directly but to secure a more cost-efficient, climate-friendly and resilient energy supply. Thermal storage plays a crucial role by providing the necessary temporal flexibility without touching production processes.
How demand side management works in practice
DSM involves shifting, reducing or making electricity use more flexible within a company for strategic reasons rather than technical necessity. This requires a detailed understanding of load profiles and careful coordination between energy management, process control and power procurement.
In industrial settings, the focus is on moving energy-intensive operations into periods of high renewable availability and low prices, such as windy or sunny hours. The production schedule itself stays unchanged. Flexibility comes from smart control, not from throttling core processes.
Thermal storage as the key to flexibility
Many energy-intensive companies need a continuous supply of process heat or steam, regardless of price signals on the electricity market. This is where the combination of power-to-heat and thermal storage comes in. Electricity is used to generate heat that does not have to be consumed immediately. The storage unit acts as a buffer between the power system and production.
This decoupling offers several advantages. Electricity can be purchased precisely when it is available and inexpensive, for example during periods of high renewable generation. The heat is stored and fed into production only when it is actually needed. This gives companies temporal flexibility without intervening in production processes.
Industrial control rather than market participation
Unlike active flexibility marketing, where companies use controllable loads or storage directly on the electricity market, DSM with thermal storage focuses on internal optimization. Savings are achieved through targeted electricity purchasing and the avoidance of expensive peak loads.
The foundation for this is formed by digital energy management systems that record, forecast and control energy consumption in real time. They help identify savings potential, anticipate price fluctuations and deploy storage intelligently, without the company having to act as a market participant itself.
Making use of price dynamics
Price volatility in spot markets reveals the economic potential of internal flexibility. For companies with thermal storage, this creates a clear opportunity for optimization. Electricity can be purchased during low-price periods, converted into heat and stored for later use. This avoids peak loads and stabilizes energy costs over the long term.
Framework conditions: incentives for flexible loads
Demand-side flexibility is increasingly supported by policy. Funding programmes for power-to-heat systems, reduced grid charges for controllable consumers and new energy regulations create financial incentives.
There are also strategic benefits. Companies that manage their energy flows flexibly improve their resilience and carbon footprint. In sectors facing strong emissions pressure and clear ESG targets, DSM is becoming a lever for decarbonization and sustainable site development.
DSM with thermal storage in practice
Technically, the principle is straightforward. As part of a power-to-heat solution, an electric boiler is operated when electricity is cheap or oversupplied. The generated heat is stored temporarily and used later as required.
This principle can be integrated smoothly into existing infrastructure. Control is automated and production remains unaffected. The result is lower energy costs and simpler planning.
Service models to support companies
Not all companies want to manage storage and energy control themselves. Service providers offer different models, ranging from simple plant operation to full-service contracts including power procurement, storage control and heat supply.
These heat-as-a-service models reduce the burden on internal resources and provide planning security. Companies benefit from flexibility in the background while receiving stable and predictable heat supply.
Flexibility as a core capability
As the share of renewable energy continues to grow, pressure on all actors in the power system will increase, including consumers. DSM combined with thermal storage offers a practical and readily available answer to this challenge. The technology is mature and proven in practice.
Companies that invest in flexibility today secure more than short-term cost advantages. They strengthen their resilience, improve their carbon footprint and increase their competitiveness in an energy system shaped by volatility and decentralization.
