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Load management Requirements of load management program

• In the past, the power utility company supplied reduces demand during critical system load periods.
electric energy to meet all customer demands.
results in a reduction in
• Recently, customer load management is considered as  new generation requirements,
an alternative to partly avoid capacity expansion.  purchased power,
 fuel costs.
• financial constraints
(high project cost, high cost of labor, materials and  acceptable cost/benefit ratio.
interest rates), operates at an acceptable reliability level.
• environmental concerns acceptable level of customer convenience.
• high cost of fuels benefit to the customer in the form of reduced rates or
other incentives.
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Demand-Side Management Demand factor,

• First introduced in 1981 as “Demand-Side Load Management” by Clark
W. Gellings.
• Changed to “Demand-Side Planning”.
• And then changed to “Demand-Side Management”
• It is the “ ratio of the maximum demand of a system to the total connected load of
the system”
• It is usually less than 1.0. It is an indicator of the simultaneous operation of the total
connected load.

What is DSM?
Connected load
• Any program intended to influence the customers’ use of • It is “the sum of the continuous ratings of the load-consuming apparatus connected
electricity is considered as DSM to the system”.

• DSM must achieve selected objectives of reduction in average Plant factor

rate of electricity, improvement in customer satisfaction • It is the ratio of the total actual energy produced or served over a period of time to
• DSM should be evaluated against non-DSM alternatives the energy that would have been produced or served if the plant had operated
continuously at maximum rating. Capacity factor or use factor.
(rehab of Power Station, Loss reduction program etc.)

• DSM identifies how customers will respond not how they should
respond
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Load factor
• It is “the ratio of the average load over a designated period of time to
the peak load occurring on that period”

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Definition

DSM is the planning, implementation, an monitoring of

Where Di = maximum demand of load I, disregarding time of occurrence.
Dg = D1+2+3+…+n
= coincident maximum demand of group of n loads.
those utility activities designed to influence customer use of
electricity in ways that will produce desired changes in the
utility’s load shape, that is, changes in the time pattern and
magnitude of a utility’s load.(Gellings, 1985)

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Inefficient Electricity Pricing

Why DSM?
 Generally, electricity rates are set to recover the average costs of all utility resources
which includes, high-cost plants and power purchase contracts.
• Inefficient Electricity Pricing
• T&D Cost Savings  And such rates do not reflect the true cost of supplying electricity.
• Reduce Large Capital Investment  For example, a high load factor customer may pay the same rate as a low load factor
• Reduce Losses customer, though it costs much less to supply the former.
• Uncertain load growth
 As a result it would be beneficial to use distributed resources (i.e., DSM).
• Uncertain fuel costs
• Shortage of government funding for generation project
T&D Cost Savings
• Absence of foreign capital for generation project
 The most significant potential for DSM lies in application with substantial transmission
• Environmental benefits
and distribution cost savings.

 With DSM transmission and distribution (T&D) cost could be avoided.

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Reduce Large Capital Investment

 With DSM, investment in large generation capacity could be
avoided.
 As a result investment requirement will be lower.
Reduce Losses
 One of the main attractiveness of DSM is that it is located near the
load center that will minimize the transmission loss compared to
electricity transmitted from the central generation.
Objectives of DSM
 Peak Clipping – direct load control of customers; peak
load pricing, the objective is to reduce peak load; reducing
peak may not decrease overall energy consumption
 Valley Filling – building of off-peak loads through
promotion of new water heating and space heating loads,
battery charging, off-peak pricing; objective is to increase
electricity sales

 Higher the losses in the transmission system the more attractive is

DSM.

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Objectives of DSM… Objectives of DSM…

 Load Shifting – shifting load from peak to off-peak; heat
storage
 Strategic Conservation – end-use energy efficiency
improvement; this is the main objective of DSM efforts
 Strategic Load Growth – demand promotion to justify
the potential of local resources, fuel substitution;
objective is to increase electricity sales
 Flexible Load Shape – flexible load curve that can
accommodate demand and utility’s operational
characteristics. Utilization of wet season surplus
energy and reduction of demand in dry season in a
hydroelectric system.

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Objectives…
Different utilities may place different priorities on these
objectives

Priorities of an utility could be different between short-,

and long-term

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Demand-side Management Activities Direct Load Control

• With prior agreement (voluntary)
 Direct Load Control
• Control Devices: Time-Switch, Thermostat, Current Limiter, Remote
 Thermal Storage Control, etc.
• Loads: Air Conditioners, Water-heaters, Space-heaters, Irrigation
 Cogeneration pumps
 Electrification
 Energy substitution program • Without prior agreement (involuntary)
• Scheduled load curtailment
 Energy Efficiency Improvement • Unscheduled load curtailment
 Electricity Pricing
 Intelligent Motor Controller
 Power Factor Correction
 Labeling and Standardization
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Thermal storage: Storage Heating

Storage cooling; Storage heating; Storage water heating
Storage cooling
• to extract heat from a storage medium at night and use the medium to
absorb heat from the building’s interior space the following day.
• Upto 80% demand of air conditioning can be shifted to off-peak
Chilled water storage
Water is chilled to 40-42 degrees F at night and stored in a large tank for
circulation to fan coil units in the building to provide daytime cooling.
Ice storage
• Water is chilled to 32 degrees F and frozen
• Enhanced storage capacity. The volume of the container required for ice
storage is only 15 to 20 % of that required for chilled water storage.
Eutectic salt storage
• This is a storage medium in common use.
• Advantage of a freeze point of 47 degrees F which reduces energy
requirements.
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High temperature storage
• Storage heating equipment are heaters with a brick-like, refractory, core material
• Heated by electric resistance heating elements, to 1300-1400 ˚F during off-peak
• Electric energy is converted to thermal energy and stored in the core for use as called for
during a peak hour
Low temperature storage
• uses water as the storage medium.
• stores hot water in a large, pressurized tank.
• maximum hot water storage temperature is about 280 ˚F.
Storage space heating
• thermal storage in conjunction with a standard space heating techniques to
• achieve peak clipping or load shifting benefits
• on-peak space heating from thermal reservoirs charged during off-
peak hours.
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Cogeneration
• cogeneration, utilizes the waste heat from the production of
electricity in thermal plants and industries.
• It is feasible to supply for district heating (space heating and water
heating at multiple sites from a central source) via cogeneration.
• Electricity can be generated as by product in an industry utilizing
the waste material (like bagaas in sugar factory) and waste heat in
any process or chemical industry.
Electrification
• Major Targets: rural electrification, electric transport systems, and
fuel substitution in industrial appliances.
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Energy Efficiency Improvement
Improvement of efficiency in energy use. It covers major end-
use and associated appliances. Major programs are:
 Building Envelope Programs (Building Insulations and
Reduction of Air Infiltration).
 Improved Air Conditioner Efficiency.
 Improved Water Heating Efficiency.
 Energy-Efficient Motor-Systems.
 Energy-Efficient Appliances and Uses.
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Substitution of Electricity by solar
• the use of solar energy is most viable in the low latitude regions,
between the tropics of Cancer and Capricorn.
• Lighting, space heating and water heating are the most important end-
uses where substitution of electricity by solar are feasible.
• Improve building design to introduce more solar light into rooms, thus
saving electricity.
• Utilize good architecture to bring more heat from sunlight into
buildings in cold climates.
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Intelligent Motor Controllers
• A computerized intelligent motor controller optimizes demand for
the end user by staggering the energy demands of induction
motors.
• The typical industrial plant with a large number of motors will
deliver a demand spike to the system during start-up, and the
system must build the generating capacity to meet this demand.
• The plant will probably experience a cost penalty due to the
instantaneous spike in its kVA.
• With intelligent controllers a plant should be able to reduce its
subscribed capacity.
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Power Factor Correction Demand Management by Pricing

• Definition of Power Factor PF = kW/kVA or MW/MVA
• Time-of-Day Rates, Off-peak Rates
• If NEA’s peak load is = 1050 MW and the on-peak PF = 0.91
• Generation required is: MVA1=MW/PF=1050/0.91=1153 MVA • Seasonal Rates
• If enough distribution capacitor banks are installed to raise the PF to
0.97 • Inverted Rates
• Generation for the same peak load is reduced as follows: • Promotional Rates
MVA2 = 1050/0.97 =1082 MVA
• Hence, the reduction in needed generation is: • Maximum Demand Charge for Residential Customers
MVA = MVA1 – MVA2 = 1153 – 1082 = 71 MVA
• Conservation Rates

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Time-of-Day Rates Seasonal Rates

• Higher rate during peak period and lower rate during off • Rates according to season to reflect the seasonal variation
peak periods in cost of generation
• Main objective is to reduce peak demand and encourage
off peak use. • Useful in hydro-dominated system
• To provide correct signals on temporal variations in • These rates differentiate among the seasons in which the
electricity supply costs (capacity cost + energy cost) energy is consumed.
• Off-Peak Rates are priced to reflect lower off peak cost of • These rates may be combined with flat rate
generation
• TOD and seasonal rates are also know as Time of Use
(TOU) rates

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Inverted Rate
• Customer pay more for each unit of electricity
consumed in later tail blocks
• The first block may or may not consist of a life line rate
• Nepal Electricity Authority adopts inverted rate with
life line rate for domestic consumers
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Conservation Rates and Promotional Rates
• Conservation Rates
• Reduced rates for buildings with prescribed level of thermal
insulation, peak saving solar appliances or meets minimum
energy efficiency standard
• Promotional Rates
• These rates are designed to attract targeted group of
customers to a utility service area.
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Demand Charges
• Maximum Demand Charge for Residential Users (2-Part
Residential Tariff)
• encourages customers to spread their load
• can encourage the use of efficient appliances
• Incentive for customer to improve load factor
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Information and Labeling
• Information programs focus on disseminating information on energy
conservation measures or more efficient technologies.
• Following are information programs:
• educational program targeting schools
• seminars and workshops for selected audience,
• training programs,
• public marketing (radio, TV, printed media),
• performance labeling of specific products
• dissemination through brochures and leaflets to a specific customer
class.
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Information and Labeling
• Labeling is an activity usually done in cooperation with appliance
manufactures. It consists of submitting their products to a set of
performance tests to evaluate appliance energy efficiency.
• The labels are usually given by an independent organization
(a government agency, laboratory, energy company, or an environmental
NGO)
• The objective such organization is to inform the purchaser of the estimated
annual energy consumption of a particular piece of equipment.
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Standardization
• A standard can be understood as a code, guideline, norm, law, protocol, recommendation,
criterion, or rule.
• Standards can be introduced for new appliances, materials, and buildings.
• The main objective is to have a regulating system which ensures that these new products
will have lower consumption levels than the ones they will be replacing over time.
• These standards can be voluntary during a certain period, and after that they tend to
become compulsory.
• Standards are useful in situations where energy efficiency improvement cannot be
achieved otherwise.
• Building energy standards are a good example because
• Energy maintenance costs are often considered irrelevant during the project design
and construction phase
• building designers and contractors are not the ones who pay its utility bills.
• the builders and designers seek to minimize up-front costs.
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