Tuesday, August 26, 2008

Demand side management

Demand-side management is used to describe the actions of a utility, beyond the customer's meter, with the objective of altering the end-use of electricity - whether it be 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 utility costs. In other words DSM is the implementation of those measures that help the customers to use electricity more efficiency and it doing so reduce the customers to use the utility costs. DSM can be achieved through.
1.Improving the efficiency of various end-uses through better housekeeping correcting energy leakages, system conversion losses, etc ;
2.Developing and promoting energy efficient technologies, and
3.Demand management through adopting soft options like higher prices during peak hours, concessional rates during off-peak hours seasonal tariffs, interruptible tariffs, etc.

DSM, In a wider definition, also includes options such as renewable energy systems, combined heat and power systems, independent power purchase, etc, that utility to meet the customer's demand at the lowest possible cost.
Often the terms energy efficiency and DSM are used interchangeably. However, it is important to point out that DSM explicitly refers to all those activities that involve deliberate intervention by the utility in the marketplace so as to alter the consumer's load profile. Energy efficiency issued in an all encompassing sense and includes any activity that would directly or indirectly lead to an increase in energy efficiency. To make this distinction precise, a program that encourages customers to install energy efficient lighting systems through a rebate program would fall under DSM. On the other hand, customer purchases of energy efficient lighting as a reaction to the perceived need for conservation is not DSM but energy efficiency gains.
There has been growing recognition of the importance of energy efficiency in India's electricity sectors. The Ministry of Power (MoP) is the nodal agency for energy conservation in the country. The Bureau of Energy Efficiency (BEE), an autonomous body under the MoP, was set up in 1989 to coordinate initiatives and activities on energy conservation. Several state electricity boards(SEBs) have also set up Energy Conservation Cells, some of which have been assisting industries in conducting energy audits. Several reports have been attempted to estimate the potential for energy conservation in various consuming sectors and have also identified various Energy Efficiency technologies (EETs) for important end-uses. The National Energy Efficiency Program (NEEP) of the Government of India(GOI) has targeted savings of about 5000 MW to be realized by the end of the Eighth plan through both demand (2750 MW) and supply side (2250 MW) efficiency improvements. In terms of Government policies, there are special equipment in the first year, subsidies for energy audits, reduced customs duty for selected control equipment for managing energy use, and so on.

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