DSM4islands is a Research & Innovation (R&I) project that started on 1 December 2024 and will run until 30 November 2027. The project name DSM4islands is a short form of the project title: Integrated Demand-Side Management as flexibility driver for the energy transition using the example of island power systems.

The main aim of this project is to develop solutions that demonstrate the value of Demand-Side Management (DSM) for maximizing the share and enhancing the reliable operation of Variable Renewable Energy (VRE) in power systems in different geographies and climates. The focus of DSM4islands are island power systems, where the integration of VRE significantly affects grid stability. These smaller, self-contained grids not only show a high demand for flexibility solutions, but they also serve as ideal testing grounds for innovative flexibility schemes like DSM, providing valuable insights that can also be applied to larger power systems. The DSM solutions developed within this project will be tested on the islands of Cyprus and Lampedusa, allowing to gather learnings that can be applied to other islands and microgrids as well as to DSM products and processes. To successfully implement this project and address key challenges of the clean energy transition, a highly skilled transnational consortium has been assembled. Two renowned research institutions – the University of Cyprus and the University of Palermo – join forces with three well-known private companies in the renewable energy sector, namely EPL Technology Frontiers Ltd from Cyprus, Exalto Energy & Innovation S.r.l. from Italy and Energynautics from Germany.

The project intends to assess flexibility solutions for island grids to support the increase of VRE contribution in the local power systems. Furthermore, the project will allow to gather learnings that can be applied to other islands and larger continental power systems that will be in need of similar technologies in the near future. While most current efforts to integrate a growing share of renewables in power systems focus on the generation side, exploring demand-side solutions—and their potential benefits for grid stability—provides another valuable tool that will be essential for future power systems. With its expected outcome, DSM4islands will therefore leverage the clean energy transition and thus contribute to higher level European policy goals which will motivate non-EU countries to follow.