Demand side management (DSM) aims to modify consumer demand for electricity through methods like financial incentives and education. The goals of DSM include encouraging consumers to use less energy during peak hours and shift use to off-peak hours. This helps utilities balance supply and demand as well as avoid costly capacity additions. DSM provides benefits to utilities like lower costs and improved efficiency, while consumers see potential savings on electricity bills and maintain their lifestyles. In West Bengal, utilities have implemented some DSM programs like time-of-day meters, LED lighting retrofits, energy audits, and waste heat recovery to better manage demand.

1. Demand Side Management:
Concept, Need and scenario.
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2. The imperative logic of
Demand Side Management
• A better use of resources equals lower cost for
service.
• A balanced use of resources means a more
secure and reliable energy supply.
• An expansion for products/services using less
energy (using more wisely) is an injection for
future business.
• A step change in improved energy efficiency is
the only way to achieve wide-spread welfare
without resources depletion

3. What is Demand Side Management ?
• DSM is universal and does not only apply to utilities,
electricity or monopolies
• DSM encompasses the entire range of management
functions (planning, evaluation, implementation
and monitoring)
• DSM = Large-Scale Deployment of Energy Efficient
Equipment by use of specially designed Programmes

4. The issues!
• Load level
– a wasteful demand requires too much supply for the
specific needs
• Load shape
– high peaks,
– little reserve capacity,
– Bottle necks in transmission and distribution
• Market responsibilities
– who is the owner of the problem?

5. Strategic
growth
From this
Strategic
Saving
To This
Or to
this
DSM can change the LOAD LEVEL
Adapts the system to the environmental requirements
From “carbon-fat” to carbon-lean

6. DSM can Change the LOAD SHAPE
Adapts the load to the capacity of the system
Winter Summer Winter or
Day Night Day
Before
After

7. The smart grid

8. Source: An EPRI Initiative to Advance the Efficient and Effective Use of Energy
New Technologies

9. APPROACH TYPE EXAMPLE
Mandated Standards  Minimum performance
(MEPS)
 Top-runner standard
“Agreed Actions”  Voluntary Agreements
 Technology Procurements
Delegated Actions By actor  Regional bodies
 Municipalities
By Means  Commitments
 Certificates
Market
Acceptance
Price-responsive customers  Taxes; Tax reduction
 Price elasticity (Demand
Response)
Non-price responsive
customers
“Commoditising”
energy efficiency
 Energy Services (ESCO)
 Labels
Policy drivers

10. Climate
• Strong policy-drive gives many opportunities
to find support for focused programmes,
especially when fossil fuel is targeted and
renewables promoted
• Crosscountry activities in e.g. CDM
• Emission rights trade and carbon taxes provide
financial incentives

11. Energy Efficiency is the first step on the
road to sustainability
Supply
High Density
(e.g. fossil, nuclear)
Low Density
(e.g. solar, wind, bio)
End-UseofEnergy
High Efficiency
(Low Intensity)
e.g. CFL and LED lighting;
Adjustable speed drives
UNECONOMICAL SUSTAINABLE
Low Efficiency
(High Intensity)
e.g. Incandescent lamps,
Direct electrical heating
PRESENT SYSTEM HARDLY FEASIBLE

12. Energy Security
• Fuel and system diversification is increasingly
important and is coupled to use of distributed
generation
• Supplier market position and demand
elasticity is an issue with policy implications
(windfall profits)

13. Industry development
• The ongoing crisis gives policy incentives to
develop new industries, especially related to
”smart grid” functions
• Job creation
• Changes requires new partnerships where
technologies meet market skill

14. Succes at last!?
• Today the UN-FCCC supported by the UNDP
and the General Secretary of the UN will
declare that DSM will be mandatory in all
countries from 2010!!
• Remember todays date!!
•APRIL 1st, 2009

15. Is sustainable growth possible…
..without DSM ?

16. 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.
• Usually the goal of DSM is to encourage the
consumers to use less energy during peak hours or
to move the time of energy use to the off-peak
hours viz. night
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17. UNDERSTANDING DEMAND AND SUPPLY
Q) Who Demands electricity?
A) The consumer
Q) Who will manage demand for electricity by
the consumers?
A) The Service provider with equal participation
from the Consumer.
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18. Need for Demand Side Management
• 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 system.
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19. 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.
19

20. 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
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Usual Load Curve of an Utility for a 24 Hour period

21. 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
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22. 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)
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23. Therefore consumers too have
a very important role to play
for achieving the objectives of
DSM
DSM
Utility
Consumer
23

24. HOW TO DO Demand Side Management?
• 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 and
addressing Aggregate Technical and Commercial (AT&C)
Losses
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25. Benefits of Demand Side Management
•
Customer Benefits Utility Benefits Society 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
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26. Present Scenario in West Bengal
Major utility Service
Provider
Peak Load
WBSEDCL 4,600 MW
CESC 1,700 MW
Type of Consumer Percentage of Electricity usage under
WBSEDCL (2011)
Domestic 30.3%
Commercial 14.07%
Agriculture 10.25%
Industrial 35.93%
Others 9.36%
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27. Actions undertaken by WBSEDCL in West Bengal
• Time of the day( TOD) meters for Industrial and
Agricultural consumers.
• 173 sodium vapour lamps replaced by LED
• Energy Audit undertaken in Government buildings and
corrective measures are being undertaken
• Waste Heat Recovery in some industries undertaken
• Bachat Lamp Yojna
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