Demand Side Management: Julius Pucker 0705666065

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Demand Side Management

Julius Pucker
0705666065
jpyazzi2@gmail.com

Kyambogo
University
31.10.2023 1
CONCEPT
The Genesis of DSM
OF DSM
• The term DSM was coined following the time of the 1973
energy crisis and 1973 energy crisis.
• DSM was introduced publicly by Electric Power Research
Institute in Europe in thec1980s.
• It has been introduced in the USA, more specifically in the
electricity industry, in the mid-eighties.
• Originally defined as the planning, implementation and
monitoring of a set of programmes and actions carried out
by electric utilities to influence energy demand in order to
modify electric load curves in a way which is advantageous
to the utilities.
• Changes in load curves must decrease electric systems
running costs – both production and delivery costs -, and
also allow for deferring or even avoiding some investments
in supply-side capacity expansion.
The Concept of DSM…….
• Thus, DSM has been driven by strict economic reasons.
• Energy efficiency was a privileged instrument for DSM
implementation, as will be seen. Hence, in societal terms, this
was a typical win-win situation, as consumers would also
benefit from cheaper energy services, as overall efficiency
would increase.
• In general, DSM implementation options may be classified
into several different broad categories: customer education,
direct customer contact, trade ally co-operation, advertising
and promotion, alternative pricing, direct incentives.
The Concept of DSM…….
So What is DSM ?
• DSM, also known as energy demand management or
demand-side response (DSR) is the curtailing of the
client’s energy demand by numerous strategies, including
behavioral changes (through awareness) and financial
benefits.
• It also refers to a group of actions designed to
efficiently manage a consumer’s energy consumption with
the aim of cutting the costs incurred for the supply of
electrical energy energies and general system changes.
• DSM aims on using power saving technologies, electrical
incentives, and government policies to mitigate the peak
load and instead of enlarging the generating capacity or
reinforcing the transmission, distribution network.
The Concept of DSM…….
So What is DSM ?
• The objective of DSM is to inhibit consumers from
depleting less energy during the peak time frame or
from shifting the energy use to an off-peak time frame
such as weekends or nighttime. It encourages the
consumer to use less energy during peak hours, or to
move the time of energy use to off-peak times such as
night-time and weekends.
• Peak demand management does not necessarily
decrease total energy consumption, but could be
expected to reduce the need for investments in
networks and/or power plants for meeting peak
demands.
The Concept of DSM…….
• Also, it does not necessarily reduce overall energy usage or
consumption. On contrary, it focuses on reducing the need
for investing in power plants or networks excessively for
meeting the optimal demands, for example, conserving the
energy storage during off-peak hours and discharging it
during peak hours. An example is the use of energy storage
units to store energy during off-peak hours and discharge
them during peak hours.
• A newer application or strategy for DSM is to aid grid
operators in balancing intermittent generation from wind
and solar units, particularly when the timing and magnitude
of energy demand does not coincide with the renewable
generation.
• Nowadays, DSM technologies become increasingly feasible due to the
integration of information and communications technology and the power
system, new terms such as integrated demand-side management
(IDSM), or smart grid.
The concept of DSM…………
• As said before, DSM is the planning, implementation, and monitoring of those utility
activities designed to influence customer use of electricity in ways that will produce
desired changes in the utility’s load shape, i.e., changes in the time pattern and
magnitude of a utility’s load.
• Utility programs falling under the umbrella of DSM include: load management, new uses,
strategic conservation, electrification, customer generation, and adjustments in market
share.
• DSM includes only those activities that involve a deliberate intervention by the utility in
the marketplace so as to alter the consumer’s demand. Under this definition, customer
purchases of energy- efficient appliances as a reaction to the perceived need for
conservation would not be classified as DSM Demand side management.
• It is generally most convenient for utilities to look at DSM in terms of broad load
shaping objectives. The load shape is the daily and seasonal electricity demand by time-
of- day, day-of-week, and season.
• Within this context, six broad categories of load-shape objectives can be distinguished:
peak clipping, valley filling, load shifting, strategic conservation, strategic load growth,
and flexible load shape. The ideal goal for DSM is energy conservation.
There are four types of DSM
Depending on situation and application, you can apply the following types of DSM.
1. Energy Efficiency:
This is a type of DSM where we use less power to carry out the same tasks,
including a permanent demand reduction by replacing equipment with more
efficient ones.
2. Demand response:
• This encompasses any preventive or reactive strategies to decrease or shift
the demand.
• Demand response (DR) programs not only focus on reducing the peak
consumption to defer high supply cost but also aid in altering the net load
structure -which is wind and solar power production subtracted from the
total load- while integrating all variations of renewable energy.
• DR includes all purposeful variations applied on the electricity consumption
trends of the utility consumer that are intended to change the timing, the
total power consumption, or the intensity of spontaneous demand.
• DR strategies include a range of actions carried out on the client’s end of the
electric meter during high charges or congestion of peak period network.
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3. Dynamic demand:
• Dynamic demand is the delaying of operating cycles of equipment by a few
seconds to induce diversification of load sets.
• The idea of dynamic demand is to monitor the power factor of the electric
grid in addition to their parameters, loads administered individually at
intermittently during peak periods to stabilize the total system load with
production, decreasing serious power disorder.
• The end user, i.e., the client, has negligible effects as the delay in the
operating cycle is only by a few seconds.
4. Distributed Energy Resources (DER):
• The on-site generation (OSG), distributed energy and generation, and
decentralized/district energy is electrical production and conservation
achieved by various small devices that are linked to the grid known as DER.
• Unlike large renewable power stations, DER is more decentralized, flexible,
and within close proximity of the load. However, they tend to carry a
capacity of not more than 10 MW.
• The DER can be controlled and coordinated using an interface within a smart
electric grid.
• The dispersed storage and generation allow accumulation of power from
various sources that could decrease the environmental changes and improve
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Furthermore, DSM can be categorized into scales of implementation:
• National Scale: Improving energy efficiency is as significant as DSM
strategies. The legislation and standards in various areas, including
machinery, housing, transport, building, and appliances can improve
efficiency nationally.
• Utility-scale: When the demand is at its peak, utilities can control the
storage water heaters, air conditioners, and pool pumps in large regions to
stabilize the energy demand with supply.
• Community-scale: This is also known as district/precinct/ neighborhood
scale. In regions of extreme winter or summer, central heating/cooling
systems have been used to manage the peak load. Another way to implement
DSM on a communal scale is accomplishing Net Zero Building or community.
• Individual household/Personal Business scale: The utility of solar energy
allows the reduction of energy consumption from the electric grid.
Systematic DSM approaches such as energy efficiency measures, storage
water heaters, PV operations, air conditioner, building performance, and
energy storage systems are practical household/business level strategies.

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WHY DSM????
• Reduced overall cost of installed capacity
• Ensure quality and equity
• To reduce power blackout (power outage)
• To increase system reliability
• To reduce the energy pricing
• To avoid harmful gas emission
• To reduce environmental pollution
Depending on the situation you can apply any of the
following;

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WHY DSM????
1. Maximum demand controller
2. Automatic power factor controller
3. Soft starter with energy saver
4. Variable speed drive
5. Energy efficient transformers
6. Electronic ballast
7. Occupancy sensors
8. Energy saving potential of each technology
9. Energy efficient motors

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SCOPE OF DSM
• Initiative from the consumer side in very important for successful DSM.
The scope of DSM includes,
1. Load shifting/ load management – peak hours off peak hours, load forecasts
2. Energy conservation – the high energy efficient devices instead of low
3. Increased Electrification

Benefits of DSM
Customer size
• Reduced cost
• Conservative energy
• Maintenance life cycle
• Satisfy desires
• Increased value of service
Utility Need
• Reduce capital requirement
• Improved financial service
• Increase system utilization
• Reduce critical fuel usage
• Enhanced image of utility and industry 13

Mutual Benefits/Customer need


1.Benefits for supply industry/Utility
• Reduction in consumers bill
• Reduction in new power plant
• Transmission and distribution network
• Stimulate economic development
• Creating new long job opportunities on innovation and
technique
• Reduce in air pollution
• Improving operating efficiency and flexibility
• Improving load factor
2.Customer benefits
• Safety electricity demands
• Reduce/ stabilize the cost
• Improve the value of service
• Maintain/improve life style and production
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3.Social benefits
• Reduce environment degradation
• Conserve resources
• Protect the environment
• Maximize customer welfare

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BENEFITS, CHALLENGES AND BARRIERS FOR DSM
DSM programs offer clear benefits to stakeholders, households, enterprises,
utilities, and societies. They could be summarized as follows:

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The concept of DSM is not new and the key technologies
for its implementation have already been developed.
However, the implementation of DSM has been slow
because of the challenges associated with it as list
below:
o Lack of Information, Communication and Technology
infrastructure.
o Lack of awareness program about DSM and its
benefits.
o DSM based approach increases the complexity of
system when compared with traditional approach.
o Cost of energy efficient equipment
o Tariff

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o Poor power quality
o Poor reliability
o Shortage of skilled staff
o Unavailable of efficient equipment
o Improper market structure and lack if
incentives.
o DSM based approach are often less
competitive.
o Economy associated with DSM based solutions
in a long run.
o Rehabilitation of distribution system network is
quite tedious.
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The barriers for DSM are as follows:
i) Monopoly power market structure.
ii) No competition which leads to traditional and
inefficient tariff structure.
iii) Lack of creating awareness among consumers about
the efficient use of energy.
iv) Lack of energy efficient environment.
v) Huge gap between supply and demand of energy.
vi) Lack of proper incentive schemes to consumer on
using energy efficient appliances and utility to implement
DSM solutions.
vii) Power system reliability, quality and stability is not
able to keep itself in standard position.
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Elements of DSM implementation
i. Staffing plan and job descriptions for different
aspects of the programme-contracting, marketing,
supervision, motivation and evaluation.
ii. Standard contracting procedures for direct
installations, marketing and standarding offers,
bidding procedures for energy service company.
iii.A promotion/Market plan to maximize participation
iv.A schedule of activities with participation for each
year of the programme.
v. A budget and expenditure plan
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DSM Administration/activities
Load management programmes: Redistribute energy
demand to spread it more evenly thousand days, e.g load
demand and shifting these loads to less critical
periods), and time of use rates (charging more for
electricity during periods of peak demand).
Conservation programmes: Reduce energy use, e.g
programmes to improve the efficiency of equipment,
building, and industrial process.
Strategic load growth programmes: Increase energy
use during some periods, e.g programmes that
encourage cost effectiveness electrical technologies
that operate primarily during periods of low electricity
demand. 21
Planning and Implementation of DSM
1. Develop end use demand forecasting
• Conduct a survey of all anticipated loads
2. Undertake load/Market research to identify end -use patterns and
market barriers.
• To design effective DSM programs. Its important to know how
electricity is used and what barriers are preventing customers from
using efficient technologies.
• Load research .. should be undertaken to estimate the load curves for
each sector or region using local sub-metering customer bill analysis and
customer survey.
• Major areas of interest to DSM programmes include the residential,
commercial, industrial and public utility sectors.
• Market research is needed to understand the target market , identify
barriers and evaluate possible solutions.

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3.Define load shape objectives

a. Peak clipping
o Reduction in peak
o Controlling the equipment
o Controlled tariff rate 23
b. Valley filtering
o Increased load during peak off peak hours
o Building off loads
c. load shifting
o Demand shift to off peak to off peak
o Shifting peak load to off peak hours
o Popular applications include use of pumped storage plant
storage water heating, storage space heating coolness
storage.
d. Strategic conservation
o The reduction of utility load, more or less equally, during all
or most hours of the day
o Nontraditional approaches to load management
e. Strategic growth
o The increase of utility load 24
o Load shape charge which refers to overall increase in
f. Flexible load shape
o The interruptible agreements by utility to alter
customers energy consumption.

4. Identify target sectors, end uses and measures


• The collected information, is normally useful in
determining a typical load curve for each end-use
• Find out load are management objectives
• Choose sectors and end uses that account for the
largest power consumption and peak loads, or will do
so in the future.
Select DSM measures which will have the largest
impact on peak demand and electricity use. 25
5. Identify source of financing
• In any DSM program, financing is needed for individual
projects undertaken by participants.
• Utilities may require financing to solve administration
costs and cost sharing investments
• Government/Public is required
6. Review cost sharing and viability options
• Cost sharing in a DSM programme should try to maximise
viability for each partner (participant, utility and
Government).
• If current tariffs are below the marginal cost of
new power supply options, it is financially viable for
the utility to share in the cost of the efficient
technology and maximise participation in the programme.26
• The wider the differences between tariffs, the higher the
utility can be which in turn leads to higher participation
rate.
7. Programme selection and Design
• Identifying a list of programmes for each customer class.
• Formation of a brief report corresponding to the
programme
• Uniform reporting is required
8. DSM Cost/Benefit Analysis
• Based on case study/Measurement
• Calculation of financial interest
9. Identify local socio-Economic and Emotional
Impacts
• Most DSM programmes provide individual economic and
environmental impacts from power supply e.g employ
27 is

crated in the energy industry


10. Programme implementation plan
• Implementation of any DSM programme requires a
core DSM staff or cell within a power utility to
develop a plan.
• For the programme and manage its implementation,
each consultant are hinged for both aspects of the
programme.

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How to perform DSM
The utility company has to monitor their energy use
in order to give penalty by;
• To charge higher prices during peak hours
• Improve energy efficiency of various end users by
keeping energy efficient appliances.
• This is important for agriculture where energy
efficiency is very low (30-50%)
• Promoting use of Energy efficiency Technologies
and addressing (Aggregate Technical and
Commercial) losses.
Different techniques for DSM
1. Time of Day (TOD) pricing and metering
2. Multi utility power exchange model
3. Load management
4. Load priority techniques
5. Peak clipping
6. Peak shifting
7. Strategic conservation
8. Energy efficient improvement
9. Different time zones
10.Tariff intervention/option for DSM
11.Rain water harvesting

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We had looked at different techniques I the previous
slides ,and also in year three, we looked at types of
tariffs, he we shall look at;
i. Tariff intervention Tariff option for DSM
• Tariff structure should be efficient use of resources
• In order to achieve effective tariff consumer should
receive correct information about the cost involved in
delivering power.
• Tariff should lead to balance between supply and
demand
• Proper tariff should be applied as to improve the load
factor.
• Proper tariff structure can itself lead to peak clipping
and valley filling.
• This can be improved service to consumer and load shedding may not be
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required.
Three types of Tariffs…….
a.Time of Day (TOD tariff) pricing and metering,
which makes electricity more expensive during peak
hours and cheaper during off peak hours. Such tariff
encourages consumers to shift their loads from peak
to off peak hours. TOD metering is required for
implementing this type of tariff.
b.Seasonal tariff.
• The rate changes across the season.
• This type of tariff is an economical way of metering
demand. Peak consumption month-charging more
• No need of separate TOD meters

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Three types of Tariffs……..
c. Curtailable/Interruptible Rates (C/I Rates)
• C/I Rates offer incentives to those consumers who
reduce demand to a predetermined level.
• C/I rates are suitable for only the industrial and
commercial consumers
• The success of this tariff depends on reliable
communication

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What’s next for the future of energy savings?
• Adopting smart technology is a good way to save
energy in your home.
• As more people begin to take responsibility for
environmental stewardship and actively work to
control their energy usage, companies will continue
to create new energy saving technology.
• New technology to reduce energy consumption
offers savings that quickly repay the upfront costs.
• Staying ahead of the curve when it comes to
adopting energy saving innovations is a smart move
for the planet and your wallet.

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future of energy savings in
the next 150yrs???????

End

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