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Energy Storage, Conservation & Audit 13EE8409 Unit 8DEMAND SIDE MANAGEMENT
Introduction:
Demand side management (DSM) is the planning, implementation and monitoring of
utility activities designed to encourage consumers to modify their electricity consumption
patterns, both with respect to the timing and level of electricity demand. In other words DSM
is the implementation of those measures that help the consumers to use electricity more
efficiently.
According to the department of energy, DSM refers to “actions taken on the
consumer’s side of the electricity meter to change the amount or timing of energy
consumption. Utility DSM programs offer a variety of measures that can reduce energy
consumption and consumer energy expenses. DSM strategies have the goal of maximizing
end use efficiency to avoid or postpone the construction of new electricity generating plants.”
DSM typically aims to reduce utility capacity requirements and total generation.
While doing so, DSM yields both economic as well as environmental benefits for the nation,
utility and consumers. DSM is a resource that can be planned, measured and used by an
utility to satisfy consumer demand for electric services. DSM encompasses a broad range of
measures to encourage consumers to modify their consumption. DSM can be achieved
through:
i. Improving the efficiency of various end – users through better housekeeping,
checking energy leakages, conversion losses, etc.
ii. Developing and promoting energy efficient technologies
iii. Demand management through tariff re – structure
DSM also includes options such as renewable energy systems, combined heat and
power systems etc that utility do to meet the consumer’s demand at the lowest possible cost.
The primary objectives of most DSM programs were to provide cost effective energy and
help to defer the need for new generating facilities, power purchases and transmission and
distribution capacity additions. DSM clearly refers to all those activities that involve
deliberate intervention by the utility so as to alter the consumer’s load profile. A program that
encourages consumers to install energy efficient lighting systems through a rebate program
would fall under DSM.
EEE Dept, SET – JU Page 1 of 8
, Energy Storage, Conservation & Audit 13EE8409 Unit 8
Energy efficiency and DSM
Electricity consumption in India has increased by nearly 60 times since independence.
India’s energy intensity per unit of GDP is higher compared to Japan and U.S.A. this is
mostly because of the transition from an agricultural society to an industrialized country,
increase urbanization and consumerism. Bulk use of inefficient equipments accounts for
increase in demand. Subsidized prices of energy to certain class of consumers have led to end
use inefficiencies and increase in the gross energy demand. The power sector contributes
nearly 40 % of India’s carbon dioxide emissions. It also contaminates ground water.
There are two options to meet our future energy needs:
i. Increasing supply of power or
ii. Decreasing the demand for power/ energy.
One unit of electricity saved results in reduced consumption of coal by about one kg.
There is an ample potential for energy saving through energy efficiency and DSM. Energy
conservation potential for the economy as a whole has been assessed as 23% with maximum
potential in industrial and agricultural sectors. Large scale industries in India are aware of
energy saving benefits and trying to match the energy figures to the best. Standards and
labeling program will ensure that only energy efficient equipment and appliance would be
made available to the consumers. DSM aims at improving energy efficiency which is
reduction of kWh of energy consumption for the same activity. Demand load management is
the reduction of kW of demand or shifting of demand from peak to off peak time. DSM
program has proved worthy in potential peak load reductions and energy savings.
Motivation for DSM:
Developing countries have the most acute need for DSM as they have the most rapid
demand growth and limited resources. Generation, transmission and distribution have been
among the highest investments priorities in many developing countries. The rapid growth
increase in their energy demand due to increasing economic activity and high population
growth has imposed a financial crisis for the utilities. Power loans have accounted for about
40% of total public sector foreign debt in certain developing countries. In addition, often,
tariff has been set below the cost of production and distribution, to promote economic activity
and improve common man’s welfare. Regulatory authorities have recognized the economic
benefits of improved energy efficiency. They have created incentives for ut ilities to
implement DSM programs. DSM can assist utilities to delay costly capacity additions by
slowing demand growth. DSM strategies such as improved end – use efficiency can reduce
the amount of undesirable generation emissions or by – products per unit of useful energy.
EEE Dept, SET – JU Page 2 of 8
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