Demand side management (DSM) refers to modifying consumer electricity demand through methods like financial incentives and education to reduce costs, improve the environment, and enhance reliability. DSM aims to maximize efficiency to delay new power plant construction. It is driven by cost reduction, environmental concerns, and the need to shift demand away from peak times. DSM methods include time-of-use pricing, efficient appliances and lighting, and load control devices that shift appliance use out of peak periods in response to signals. DSM provides benefits to customers through reduced bills, utilities through lower costs and improved operations, and society through decreased environmental impacts and conserved resources.

1. Demand Side Management
1
PRESENTED BY :
STUTI CHAKRABORTY
IIIT,BHUBANESWAR

2. WHAT IS DEMAND SIDE MANAGEMENT?
• “Demand Side Management” is the modification of
consumer’s demand of electricity through various
methods such as financial incentives and consumer
education
• DSM refers to “Actions taken on the customer's side of the
meter to change the amount or timing of energy
consumption. Electricity DSM strategies have the goal of
maximizing end-use efficiency to avoid or postpone the
construction of new generating plants."
[USA Department of Energy]
2

3. 3
• Cost reduction of meeting energy demand
• Environmental and social improvement-
-Reduced emissions
• Reliability and network issues—improve
reliability and defer expansion
• Improved markets—demand response
• Improved national energy security
Why Promote DSM?

4. What Drives DSM?
• Cost reduction and environment:
– Reduce utility costs / customer costs
– Rising fuel prices
– Opposition/financial limitation to building new
plants
– emission/environmental concerns
• Network and market
– Delay or avoid expansion
– Competition
– Demand shifting 4

5. Need for DSM
• Saving 1 unit of electricity at consumer end
avoids nearly 2.5 times of capacity addition
• 1 MW capacity addition of thermal power
requires Rs 6 crores for installation and another
Rs 3 crores for Transmission and Distribution
5

6. Need for DSM …..(contd.)
• Increasing energy requirement
• Increasing threat of climate change and other
environmental considerations
• Energy security
• Lack of other supply options
• Huge scope for energy efficiency measures 6

7. Demand is minimum between
12 a.m. and 6 a.m.
Demand is huge between
5:30 p.m. and 9:30 p.m.
Peak Demand at 7.30 p.m.
Since – Full Lighting load, and
other Commercial and
Domestic loads
7
Usual Load Curve of an Utility for a 24 Hour period

8. Observations
• The peak demand of 4,300 MW is there for only
5-6 hours in the evening
• The base demand is 3,000 MW, which is much
less than the peak demand of 4,300 MW
• To meet the extra demand utility has to arrange
additional installed capacity or purchase power
at high rate
8

9. Observations …..(contd.)
• Thus utility will always try to encourage
consumers to:
-Use less energy during Peak hours (Peak
Clipping)
-Shift energy use to off peak hours (Valley
Filling)
9

10. Therefore consumers too have a very
important role to play for achieving the
objectives of DSM
10
DSM
Utility
Consum
er

11. HOW TO DO DSM?
• To charge higher prices during Peak Hours
• Improving the efficiency of various end uses by
using energy efficient appliances, better house
keeping and reducing energy leakages.
• This is important for agriculture where energy
efficiency is very low (30-50%)
• Promoting use of Energy Efficient Technologies
11

12. ROLE OF SMART METER
• Smart meter allows continuous metering and
distance reading of the energy consumption
• In order to give consumers offers that reflect actual
consumption and to have flexible energy demand
• DSI(Demand Side Integration) can be provided by
smart metering
• In addition, load control switches, controllable
thermostats, lighting controls and adjustable
speed drives are required.
• Such equipment receives signals such as alarms or
price signals and controls loads accordingly
12

13. • Load control switches
• A load control switch is an electronic apparatus
which consists of a communication module and a
relay
• It is wired into the control circuit of an air
conditioning system, a water heater or a piece of
thermal comfort equipment
• The communication module is used to receive
control signals from the DSI program operator
13

14. • Controllable thermostats
This type of apparatus combines a communication
module with a controllable thermostat, and
replaces conventional thermostats such as those
on air conditioning systems or water heaters
• DSI program operator (or a HAN) can increase or
decrease the temperature set point through the
communication module
• Lighting control
Lighting control equipment is used to manage the
energy used by lighting in a more efficient way.
14

15. • Adjustable speed drives
ASDs allow electric motors driving pumps,
ventilation units and compressors to function
over a continuous speed range
• The loads of the majority of motorised appliances
change over time and equipment is often
operated at less than full load
• Allows the motors to satisfy the required
functioning conditions and to economise power
and energy use when the system is not
functioning at its maximum load
15

16. Types of DSM Measures
• Energy reduction programmes—reducing
demand through more efficient processes,
buildings or equipment
• Load management programmes—changing the
load pattern and encouraging less demand at peak
times and peak rates
• Load growth and conservation programmes
16

17. Energy Reduction Programmes
• Improving performance of boilers, steam
systems, etc.
• Efficient lighting
– CFLs
– Using natural light
• Appliance labelling
• Building regulations
– Efficient and alternative energy use
• Efficient use of electric motors
• Preventative maintenance 17

18. Energy Reduction Programmes
• Energy management
– Energy purchasing
– Metering and billing
– Performance measurement
– Energy policy development
– Energy surveying and auditing
– Awareness-raising, training and education
– Capital investment management
• Hiring an energy planner
• Housekeeping
– No cost / low cost measures
– Measures requiring some level of investment
• Energy auditing
– Preliminary audit
– Detailed audit
– Financial analysis
18

19. Load Management Measures
• Load levelling:
– Peak clipping
– Valley filling
– Load shifting
• Load control:
– Loads (e.g. heating, cooling, ventilation, and
lighting) switched on or off, often remotely, by the
utility
• Tariff incentives or penalties:
– Time-of-use & real time pricing
– Power factor penalties 19

20. Load Growth and Conservation
Programmes
• Growth diverting other energy sources (fuel) to
better (more efficient) electrical sources
• Growth strengthens the utilities capability to
load manage
• Conservation results in a reduction in sales as
well as a change in the pattern of use
20

21. DSM Programme Challenges
• Developing countries
– Awareness
– Technical capabilities
• Production and safety constraints
• Financing constraints
21

22. Benefits of Demand Side
Management
•
22
Customer Benefits Utility Benefits Societal Benefits
Satisfy electricity
demands Lower cost of service
Reduce
environmental
degradation
Reduce / stabilize
costs or electricity bill
Improve operating
efficiency,
Flexibility
Conserve resources
Maintain/improve
lifestyle and
productivity
Improve customer
service
Protect global
environment

23. CONCLUSIONS
• DSM is important for enabling the more efficient use of
base load capacity
• It mitigates electrical system emergencies
• Significant economic, system reliability and
environmental benefits
• Cheap, fast way to solve electricity problems
• Market DSM programmes to show potential customers
their life cycle benefits and often simple techniques for
reducing demand
23

24. THANK YOU
24