Define 'demand response' in energy management.

Demand response in energy management refers to a strategy designed to encourage consumers to modify their energy consumption patterns in response to supply conditions, such as high demand or price fluctuations. During peak times when energy demand is at its highest, utilities can call upon customers to reduce their consumption temporarily. This can involve shifting energy use to off-peak hours or decreasing overall usage, thereby alleviating stress on the power grid and increasing system reliability.

This strategy not only helps in balancing supply and demand but also can provide financial incentives to consumers for participating, making it a win-win situation for both providers and users. By adjusting their energy consumption in this way, consumers can support grid stability, possibly lead to lower energy costs, and contribute to overall more efficient energy management within their communities and regions.

Other options relate to aspects of the energy system but do not encapsulate the core principle of demand response, which specifically emphasizes consumer participation in managing energy use in response to real-time system needs.