Demand-side management (DSM) programs encourage consumers to modify their electricity usage. This paper explores how distributed power generation technology can be integrated into existing DSM schemes to provide more flexibility. Specifically, it compares the economics of using demand management contracts alone versus combining them with distributed generation sources like micro-grids and micro-sources. In some cases, integrating distributed power generation with demand management contracts may be more cost-effective than demand management alone.

1. INTEGRATED DISTRIBUTED POWER GENERATION TECHNOLOGY
INTO DEMAND SIDE MANAGEMENT SCHEMES
Syamsir Abduh
Electrical Engineering Department, Trisakti University
Jl. Kyai Tapa No. 1 Grogol Jakarta 11440
E-mail: the_abduh2006@yahoo.co.id; the_abduh@hotmail.com
Tel./Fax:021-5663232 ext. 421/021-5605841
Abstract
Demand-side management (DSM) programs consist of the planning, implementing, and monitoring
activities of electric utilities that are designed to encourage consumers to modify their level and patters of
electricity usage. In the past, the primary objective of most DSM programs was to provide cost-effective
energy and capacity resources to help defer the need for new sources of power, including generating
facilities, power purchases, and transmission and distribution capacity additions. Recent developments in
distributed power generation technology brings extra flexibility into existing DSM schemes. Many utilities
have implemented various DSM programs to help them in problematic times of the power system. This
paper explains how existing DSM ideas can be supplemented by the use of distributed power generation
technology. More specifically it compares the economic aspects of using demand management contracts
with the use of distributed power generation. In some cases it is more beneficial to use distributed
generation with demand management contracts.
Keywords: distributed power generation, demand side management, micro-grids, micro-sources