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Is DSM the answer? 
Hans Nilsson
Chairman of the IEA DSM‐Programme
What is DSM?
• 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
The issues!
• Load level 
– a wasteful demand requires too much supply for the 
specific needs 
• Load shape 
– high peaks, 
– little reserve capacity, 
– bottlenecks in transmission and distribution
• Market responsibilities 
– who is the owner of the problem?
Past, Present and Future Tasks
DSM‐concept Change agent role Example
Classic
(addressing 
utilities as 
they are)
Monopolised 
markets
Deliver products and services Paradip Port (India)
Customer aggregation Fundraising Public Benefit Charges (USA)
Liberalised markets Mandate utilities to achieve a 
set level of energy efficiency
White Certificates (Italy and 
some Australian states) and 
EE Commitment (UK)
Incentivising utilities to deliver energy 
efficiency
Decouple profit  from sales 
volume
California Investor‐owned 
Utilities
Energy Efficiency Power Station Aggregate energy efficiency 
projects to the scale of a 
virtual power plant
Jiangsu,  Shanghai and 
Guangdong (China) Efficiency 
Vermont
Government Deployment schemes Aggregation of purchasing 
power
FEMP (USA), Technology 
procurement (Sweden)
Change Agents (companies, intermediaries, catalysts)
Policy drivers
Is sustainable growth possible…
..without DSM
and without
global co-
operation?
NO!
So…YES DSM is the answer
BUT
• Is spellt differently
throughout the world
Demand Side Management
• Управление на търсенето
(Bulgarian)
• Efterspørgselsstyring (Danish)
• Kysynnänhallintatoimista (Finnish)
• (Hebrew) ‫הביקוש‬ ‫צד‬ ‫הול‬‫י‬‫נ‬
• (Japanese)
• (Korean)
• Nõudluse reguleerimise (Estonian)
• Управление спросом (Russian)
• मांग प ूबंधन (Hindi)
• Rheolaeth Defnydd Egni (Welsh)
According to Google Translation
www.ieadsm.org

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Is DSM the answer?