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Demand Side Management 2
Demand Side Management 2
4000%
3500%
% of 1974
3000%
2500%
2000%
1500%
1000%
500%
0%
1970 1974 1979 1984 1989 1994 1999 2000 2005 2010
12,000
10,000
8,000
6,000
2,000
0
1970 1974 1979 1984 1989 1994 1999 2000 2005 2010
SSM DSM
Still evolving in many parts of the
Mature and well established concepts
world
Bit complex, mainly due to non-
Reasonably straight forward
traditional aspects
Highly cost intensive (Inclining Costs) Flexible/ low cost (Declining Costs)
More manageable
Lower business costs; more
Improved utility generation &
competitive economy &
service transmission expansion
opportunities for job growth
schedule
Conservation of energy
Improved operating
Non-energy business resources & reduced
efficiency & customer
benefits negative environmental
service
impacts
Major benefits of DSM
Also considers:
Typically: • Renewables
• Conventional large • Cogen / IPP
central plants • DSM/ Energy Efficiency
• Captive Power etc.
Resource Ownership
Also considers:
Typically: • Other utilities
• Utility-owned plants • Customers
only • Third parties (IPPs)
• Regional imports
Major Planning Considerations
Also considers:
• Customers bills
Primarily: • Fuel diversity
• Rates • Risk/uncertainty
• Reliability • Environmental impacts
• Value of service
• Flexibility
Involvement in Planning
Establish objectives
Survey energy use patterns and develop demand
forecasts
Investigate electricity supply options
Investigate demand-side management measures
Prepare and evaluate supply plans
Prepare and evaluate demand-side management plans
Integrate supply- and demand-side plans into
candidate integrated resource plans
Select the preferred plan
During implementation of the plan, monitor, evaluate,
and iterate (plan revision and modification)
Process of IRP
Utility Govt
Public/ Political
Regulator
Groups
IRP
Objectives
Current
Socio-Econ-
Supply/ Demand
Political
Demand Forecasts
Forecasts
Situation
F Fuel
Renew
Others
Comparative
Assessment
Selection of
Identification of
Suitable IRP Implementation
Competing IRP
Options
Options
Monitoring/
Evaluation
Load Forecasting
Environmental
Costs
Impacts
Capital Costs Plant Operation • Emission levels
Fixed Costs (dispatch) • Emission
Variable Costs
controls
• Fuel In Service Date
Timing of Units • Compliance
• O&M
Demand-Side Planning Elements
Pre-screening of options
Technical / economic potential assessment
Program concepts
Load impacts of standard vs efficient
technologies
Assessment of customer economics
Determination of eligible market size, market
penetration
Benefit / cost analysis
Demand-Side Analysis
Customer
Acceptance
Financial analysis
Risk and reliability analysis
Environmental Impacts
Resource optimisation
Integration
Load Forecasting
Residential
Economic,
Demographic Load Shape
and Customer Commercial Forecasting
Characteristics
Database
Industrial
Market
DSM Options Supply Options Screening
Penetration
Database Database Methodology
Model
Cost/Benefit
Production Costing
Screening
Regulatory standards
Tradeable emissions permits and offsets
Environmental taxes
Other Resources on Power Sector IRP
Utility
Bottom Up
e.g. High Users e.g. Av Users e.g. Low Users
Education/ Awareness
Increasing awareness about issues concerned
with DSM objectives e.g. energy efficiency
and environmental impacts or fuel switching
Marketing of DSM products and services
Technology
Promoting replacement of old equipment and
installation of new efficient equipment
Promoting “retrofits” and/or “add ons” to the
existing technology to become DSM
technology
Special DSM equipment that is not necessarily
energy efficient e.g. storage cooling
Identifying DSM Options
User behaviour
Change in user behaviour can achieve DSM
objective e.g. promoting turning off
unnecessary loads during peak period
Regulations
Mandatory energy performance standards for
equipment and buildings
Incentives
Direct financial rewards/ penalties
Tariff change
4. Designing & Developing DSM Programs
Parameters of a DSM program design
Program focus/target;
Region
Sector
Segment
End-use
End-use technology
Program options
Program potential and estimated impacts
Program objectives (sub-objectives of DSM plan)
Costs benefits analysis
5. Implementing DSM Programs
Marketing/ Promotion
Communication Channels
Marketing Message/Selling Pitch
Summary of Attributes
Eligibility
Directions/Contact/More Information
Recruitment
Channels of participation
Ease of Participation
Post Recruitment Support
Help/Service Desk
Field support
Other Issues
6. Tracking, Monitoring & Evaluating
DSM Programs
General feedback