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Applying DSM for balancing renewable energy sources (RES), makes it possible to increase energy production of RES without the need for expensive (spinning) reserve on fossil power plants. The potential of DSM has already been demonstrated for peak shaving, but not for balancing RES. This paper illustrates the general and financial potential of DSM, describes the current practice and discusses some important aspects when using DSM for balancing. To conclude, the balancing potential of domestic freezers has been analyzed.