EE5053:

Energy Efficiency Demand Management and

Conservation
• Demand-side Management (DSM)
• Introduction to Demand-side Integration (DSI)
• At the end of this lecture, you will
– appreciate the need for DSM, technical and economic
benefits
– learn types of DSM initiatives
– formulate new DSM programs, evaluate new and
existing programs
– DSM implementation
– What next ?
Lecture 2: March 2021 1
 DSM Defined

• DSM can have two objectives: 1. Load shape

objectives, 2. National policy objectives
• What is DSM? Management of customer
demand with utility participation, technically
and financially, for mutual benefit (or for
national economic benefit)
NOT DSM
– A customer switches off a light bulb, energy
performance regulations for LEDs, publicity on EE
DSM
– Utility distributes efficient lighting devices at
concessionary prices
– Interruptible tariffs to selected customers
Lecture 2: March 2021 2
 Demand Profiles of Sri Lanka: 2005-2017

Per unit of Maximum Demand

1.0

0.8

0.6

0.4

0.2

0.0
0:00 3:00 6:00 9:00 12:00 15:00 18:00 21:00 0:00
Time
2005 2015 2017
Profile for the day on which the annual peak occurred
• Questions: How much is the load factor? To what value
may it be improved?
3
Lecture 2: March 2021
 Variations of the Load Factor

80%

70%

60%

50%

40%

30%

20%
Load factor of the peak-day Annual load factor
10%

0%
1995 2000 2005 2010 2015

Lecture 2: March 2021 4

 What is saved with DSM:
Dispatch into Demand Profile of Sri Lanka: Oct 2015

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 Demand Profile of a Middle Eastern Country 2015

System Load Profile on an Average Day in System Load Profile on an Average Day in
Winter 2015 Summer 2015

Lecture 2: 6
March 2021 6
 A Glimpse of what DSM Can Achieve:
The example of a middle-eastern country

Load-duration Curves Modified to show the benefits of an

Air conditioning DSM Initiative
1.0 1.0
LDC for 2020 with DSM 1.1 & 1.2 LDC for 2025 with DSM 1.1 & 1.2
LDC for 2020 LDC for 2025
0.8 0.8

0.6 0.6

Load (pu)
Load (pu)

0.4 0.4

0.2 0.2

0.0 0.0
0.0 0.2 0.4 0.6 0.8 1.0 0.0 0.2 0.4 0.6 0.8 1.0
Hours (pu) Hours (pu)

Lecture 2: 7
March 2021
Demand Profile of Sri Lanka: 2020
• Improved profile has benefits on
investment savings on all assets
(generation, transmission, distribution)
• Projects:
– Pumped Storage power plant(s)
– Demand-side Management (DSM) through
equipment (intervention)
• Measures and initiatives
– Clock adjustment !
– Tariff-related (TOU pricing, demand charges)
– Other promotional activities

Lecture 2: March 2021 8

 Demand Profile of Sri Lanka: Clock advanced
2000
Saving in the
If the clock is advanced
1800 evening

1600
Additional use
in the morning
1400
Demand (Megawatt)

1200

1000 Present load profile

800

600

400

200

0
0:30
1:30
2:30
3:30
4:30
5:30
6:30
7:30
8:30
9:30
10:30
11:30
12:30
13:30
14:30
15:30
16:30
17:30
18:30
19:30
20:30
21:30
22:30
23:30
Time
Lecture 2: March 2021 9
 DSM further qualified
• Utility initiated: PSPP

• Passive or Active: TOU, dynamic pricing

• Comes with funding: subsidies, incentives

• Must be win-win ( and win?)

• Benefits must be measurable

Lecture 2: March 2021 10

 Target Achievements of DSM
1100 Peak shaving 1100

1000 1000

900 900
Demand (MW)

Demand (MW)
800 800 Valley Filling
700 700

600 600

500 500

400 400
0 4 8 12 16 20 24 0 4 8 12 16 20 24
Time of Day Time of Day
1100
1100
1000
1000 Strategic Conservation
900

Demand (MW)
900 Strategic Load Growth
Demand (MW)

800
800
700
700
600
600
500
500
400
400
0 4 8 12 16 20 24
0 4 8 12 16 20 24
Time of Day
Time of Day
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Target Achievements of DSM

1100

Load Shifting
1000

900
Demand (MW)

800

700

600

500

400
0 4 8 12 16 20 24
Time of Day

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EXAMPLE

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 Different “Types” of DSM
• Peak-shaving: (write initiatives here)

• Valley filling: …..

• Strategic Conservation……

• Strategic load growth ……

• Demand-shifting …….

Lecture 2: March 2021 14

 DSM Objective 2: National Policy
• Economic Development : DSM as one of the measures to
accelerate its economic development.
• Economic Efficiency : DSM to achieve economic
efficiency. For example, a country may ban the use of
electric heating in industries, because gas or oil use for
heating results in a higher overall economic efficiency.
• Environmental Protection: A country may implement
certain desirable changes required for environmental
protection, by the implementation of DSM measures through
electric utilities. For example, the utility would encourage the
substitution of oil use for heating with electricity, owing to
pollution caused by oil-burning furnaces in urban industries.

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 DSM Objective 2: National Policy

• Fuel Diversity: Country objectives may call for a

strategically balanced fuel-mix, so that sudden price
changes or supply shortfalls in one form of primary
energy will not make a significant impact on the price and
quality of the country’s energy supply. For example, a
country may declare that it would not obtain any more
than 35% of its requirements from a single source of
primary energy.
• Energy Supply Security: This policy objective is closely
linked to the objective of fuel diversity. This is because,
fuel diversity is one way of ensuring energy supply
security.

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 Problem Discussion
• Evaluate two DSM initiatives proposed or
presently operational in Sri Lanka
Operational
1. TOU pricing

Was operational
1. Subsidised CFLs

Proposed
1. Pumped storage power plants
2. Real time pricing

Lecture 2: March 2021 17

 Beyond Conventional DSM:
Demand Side Integration
Definition of DSI
q Demand-Side Integration (DSI) is a set of measures to use loads
and local generation to support network operation/management,
improve the quality of power supply and help defer investment in
new infrastructure.

q In practice the potential of DSI depends on:

Ø availability and timing of information provided to consumers
Ø the duration and timing of their demand response
Ø performance of the ICT infrastructure
Ø metering
Ø automation of end-use equipment, and
Ø pricing/contracts
Lecture 2: March 2021 18
 Beyond Conventional DSM:
Concepts of Demand Side Integration
There are various terms in use in the demand side, whose
meanings are closely related to each other but with slightly different
focuses.

q Demand-Side Management (DSM) – utility activities that

influence customer use of electricity. This encompasses the
planning, implementation and monitoring of activities designed to
encourage consumers to change their electricity usage patterns.
q Demand Response (DR) – mechanisms to manage the demand
in response to supply conditions.
q Demand-Side Participation (DSP) – a set of strategies used in a
competitive electricity market by end-use customers to contribute
to economic, system security and environmental benefits.

Lecture 2: March 2021 19

 Implementation of DSI
Time scales

Year-ahead Energy efficiency

Incentive-based DSI system planning programmes

implementations

Capacity / Ancillary Month-ahead

Time of use rates
services programs operational planning

Day-ahead Day-ahead real time

Demand bidding / Buyback operational planning pricing

Emergency programmes
Intra-day Real time and critical peak
economic dispatch pricing
Interruptible
programmes

Direct Load Control

Real time or near real time Price-based DSI
system operation (<15 min)
implementations

Delivery of demand-
Lecture 2: March 2021 20
side resources
 DSI Implementation
Who are
• Aggregators
• Energy Service Companies (ESCOs)

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