L5 Demand Side Management and Its Requirement

Swami Keshvanand Institute of Technology,
Management & Gramothan, Jaipur

Department of Mechanical Engineering
Course: Energy Management (8AG6-60.1)

Lecture: 05
Demand Side Management
and Its Requirement
SKIT, Department of ME Course: Energy Management (8AG6-60.1)
Lecture Outcomes
After studying this lecture, a student will be able to-
 Define Demand Side Management.
 Identify the Myths and Reality about DSM.
 Define Energy Efficiency.
 Define Demand Response.
 Identify the need of Demand Side Management.
2
Coverage
 Demand Side Management
 DSM: Myths vs Reality
 Energy Efficiency
 Demand Response
3

 Definition:
– Wikipedia:
Action that influence the quality or pattern of use of
energy consumed by end users.
– World Bank:
Systematic utility and government activities designed
to change the amount and/or timing of the
customer’s use of electricity for the collective benefit
of the society, the utility and its consumers.
4

 Definition:
– Forum of Regulators (India)
Demand Side Management” means the actions of a
Distribution Licensee, beyond the customer's meter,
with the objective of altering the end-use of electricity
whether it is to increase demand, decrease it, shift it
between high and low peak periods, or manage it
when there are intermittent load demands
in the overall interests of reducing Distribution
Licensee costs.
5
Power Distribution Business

 Meet the demand with Efficiency and Reliability so that
Demand and Supply on the electricity grid will be in balance at
all times
Efficiency Means :
 Low power cost,
 Low loss,
 Low operational cost,
Best customer services
Reliability Means
Power Quality
Availability
6
Power Distribution Business
7
scope for improving system’s energy efficiency
Supply Side
Supply side management Focus of DSM as per definition
8
DSM: myth vs reality?
9
DSM: Two Main Flavors
• Energy efficiency (EE)

– Permanent reduction in consumption across the load
curve.
– Provides same or better energy service with fewer kWh.
• Load Management (or Demand Response)

– Temporary reduction in consumption at times of system
peak.
– May be associated with curtailment of service.
• Change: Technology, Price, Behavior, Standards
10
DSM - Energy Efficiency
 Permanent reduction in consumption.

 Occurs across most hours of the load curve.
 Provides same or better energy service with fewer
kWh.
 Example 1: replacing incandescent lighting with
fluorescent lighting.
 Example 2: replacing low-efficiency motor with
high-efficiency model.
 Reduces electric system energy usage and fuel needs.
 May or may not reduce system peak demand and
capacity needs.
11
Energy Efficiency
 Energy efficiency is a way of expressing the
energy performance of an energy-consuming device or
system.
 Energy efficiency generally relates energy consumption
to some other measure:
 GJ per unit of production output
 kWh per m2 per year (typical for buildings)
 kWh per 100 kg of ice (ice makers)
 lumens per watt (for lighting)
 kilometers per liter (automobiles)
 In some cases, energy efficiency is expressed
without reference to anything else.
 Example: for electric motors energy efficiency is
expressed as % conversion of electricity to useful work.
12
Some Examples of Energy Efficiency

 Replacing inefficient end-use technologies with
more- efficient models (non star with star labeled
appliances).
 Retrofitting whole buildings with insulation,
better windows, better equipment to improve efficiency.
 Operating buildings and industrial plants more efficiently via
advanced use of information and control systems.
 Installation of efficient equipments
and appliances at the very first stage.
13
Defining Demand Response

 Demand Response refers to changes in electric usage
by end-use customers from their normal
consumption patterns in response to changes in the
price of energy over time or to incentive payments
designed to induce lower electricity use when prices
are high or system reliability is in jeopardy. DR
salient features:
 Temporary reduction in consumption.
 Reductions targeted at a few specific hours, typically
coincident with system peak.
 May be associated with curtailment of service (but may
not be perceived or experiences as curtailment).
14
Need for Demand Response
15
DSM is mix of long term demand reduction and

short term demand management
16
Conclusions
 Demand Side Management is management at
consumer’s end utility.
 Energy efficient equipments, Demand response and
Energy use are three main tools for DSM.
 Energy efficient equipments are the permanent
solution.
 By opting DR, DSM could be managed in correlation
with the end use demand.
17
References
 Handbook for Implementation of Provisions of Energy Conservation Act,
2001, Version 1, 2019,
https://beeindia.gov.in/sites/default/files/Enforcement%20Manual.pdf
 Energy Conservation Guidelines, BEE, Govt. of India, 2019
https://beeindia.gov.in/sites/default/files/EC%20Guidelines-Final.pdf
 The Energy Conservation Building Code, 2017,
https://beeindia.gov.in/sites/default/files/ECBC%20book%20final%20one
%20%202017.pdf
 Energy Management and Audit, 2017
https://beeindia.gov.in/sites/default/files/1Ch3.pdf
 General Aspects of Energy Management and Audit 2017
 P. Venkataseshaiah and K.V. Sharma, Energy Management, Wiley
 WR Murphy and C McKay, Energy Management, Elsevier
18
Be Happy
and
Continue Learning
19

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Swami Keshvanand Institute of Technology,

Management & Gramothan, Jaipur

Course: Energy Management (8AG6-60.1)

 DSM: Myths vs Reality

Demand Side Management

Demand Side Management

Power Distribution Business

Power Distribution Business

scope for improving system’s energy efficiency

Supply side management Focus of DSM as per definition

DSM: myth vs reality?

DSM: Two Main Flavors

• Energy efficiency (EE)

• Load Management (or Demand Response)

• Change: Technology, Price, Behavior, Standards

DSM - Energy Efficiency

 Permanent reduction in consumption.

Some Examples of Energy Efficiency

Defining Demand Response

Need for Demand Response

DSM is mix of long term demand reduction and

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