Demand Side Management
What is Demand Side Management ?
Demand Side Management (DSM) entails actions that influence the quantity or patterns of use of energy consumed by end users, such as actions targeting reduction of peak demand during periods when energy-supply systems are constrained. Peak demand management does not necessarily decrease total energy consumption but aims at altering the end-use of electricity. In other words, DSM is the implementation of those measures that help the consumers to use electricity more efficiently and in doing so reduce the utility costs. This, in turn, will help the electricity consumers to cut costs.
How to implement Demand Side Management ?
DSM can be achieved through :-
Improving the efficiency of various end-users
through better housekeeping correcting energy leakages, system conversion
losses, etc ;
Developing and promoting energy efficient
technologies, and
Demand management through adopting soft options like higher prices during peak hours, concessional rates during off-peak hours seasonal tariffs, interruptible tariffs, etc.
Benefits of Demand Side Management
Most visible benefits of DSM are as follows:
Improve the efficiency of energy systems.
Reduce financial needs to build new energy facilities (generation).
Minimize adverse environmental impacts.
Lower the cost of delivered energy to consumers.
Reduce power shortages and power cuts.
Improve the reliability and quality of power supply.
Initiatives of Delhi Electricity Regulatory Commission (DERC) for implementation of Demand Side Management
Following are the initiatives taken up by the Commission to promote DSM in Delhi.
DSM programs have proved to be cost effective in
managing the rising demand for supply in US. In order to share the experience
of US, DERC has signed a MOU with The California Energy Commission, The
California Public Utilities Commission and The University of California as
Management and Operating Contractor for Lawrence Berkeley National Laboratory.
The MOU intends to promote information exchange and future joint research
activities in following areas :-
Energy efficiency and Demand Side Management policies and programs
Regulatory Policies for renewable energy development
Integrated resource planning
Electricity regulation and governance
Transmission pricing framework
Balancing market framework in Delhi
Market development through open access and
consumer choice
The Commission recognizes the importance of DSM as a powerful tool for mitigating peak demand. To this end the Commission has initiated a debate amongst stake holders by flagging the issue during the last couple of occasions when the tariff determination exercise was carried out. The Commission issued public notices in leading newspapers apprising the stake holders before holding Public Hearings for deciding Multi Year Tariff for the control period FY 08-11 and also again while carrying out tariff determination exercise for FY 09-10. These public notices extensively covered the issues relating to DSM, chiefly the issues set out for debate were as follows :- Time of Day Metering, Energy conservation and Demand Side Management, Creation of underground sumps of adequate capacity to enable electricity consumers to shift the timing of boosting operations to a time other than the peak demand period.
