The global shift toward renewable energy is increasing the share of intermittent electricity sources like wind and solar, creating new challenges for electricity system stability. Demand-side management (DSM), adjusting electricity use to better align with variable supply, offers a key solution. This thesis examines the potential for DSM in the Dutch food industry, a sector well-suited for electrification due to its low-temperature processes.

The research evaluates the economic and operational impacts of fully electric DSM strategies under various 2030 grid tariff designs proposed for The Netherlands. Four DSM strategies are modelled using the Calliope optimisation framework. These strategies combine different electricity procurement methods, electricity market purchases or Power Purchase Agreements (PPAs), with flexibility options: flexible production machinery or thermal energy storage (TES).

Key findings include:

- Economic Performance: Strategies using flexible machinery combined with PPAs result in the lowest total costs. TES-based flexibility also lowers costs relative to constant production but is less cost-effective than machinery flexibility. PPAs offer additional benefits by hedging against electricity price volatility, though their effectiveness depends on the contract price.

- Grid Tariff Effects: All proposed 2030 grid tariffs lead to higher grid costs than current designs. However, they do not alter the relative cost-effectiveness of the DSM strategies, flexible machinery with PPAs remains the most economical.

- Operational Behaviour: Flexible strategies shift production to low-price periods (spring and summer) and reduce it during high-price hours. TES allows constant production by shifting heat generation instead. DSM strategies without PPAs show more adaptive behaviour to price and tariff signals, while PPA-based strategies are constrained by fixed electricity volumes.

In conclusion, DSM can improve the economic viability of electrifying the food industry and contribute to grid flexibility. Grid tariff design plays a significant role in shaping industrial electricity use and can incentivize load shifting, though it may limit flexibility in responding to real-time market prices.