Summary

• Demand Side Management (DSM) of energy is an effective tool for improving energy efficiency and promoting energy conservation. There is a clear role and potential for utility driven DSM programmes.

• Demand Side Management is the process through that a power utility manages the demand for power/energy between some or all its customers to meet its current or future requires. It comprises all planning, implementing, and monitoring activities and measures designed to improve efficient use of energy and encourage consumers to changes their level and pattern of energy usage.

• Demand Side Management in the power sector is a must as it is frequent more cost effective and socially beneficial to decrease or manage electricity demand by investment in efficiency and other demand side measures than to increase power supply or transmission capacity. The strategic value of DSM and energy efficiency lies essentially in their ability to improve the financial cash flow utilities. There are several advantages of DSM to the consumers, power utilities and the society.

• Demand side management through a utility incorporates all activities which are designed to influence customer use of electricity in ways which are mutually beneficial to the customer and the utility. It assures efficient use of the electric system and gives a broader range of choices for customers.

• Utility DSM programmes commonly fall into two wide categories: load management programmes and energy-saving or conservation programmes.

• Power utilities could use DSM techniques like as Load curve modification, TOD meters, and three shift operation and staggered off day.

• Load curve modification is completed through Peak clipping, Valley filling, Strategic load growth, Strategic conservation, Load shifting, and Flexible load shape. These DSM methods could decrease the demand peaks, especially while utilization of power comes close to its limits of availability, shift the loads among times of day or even seasons, fill the demand valleys to better utilize existing power resources, reduce whole demand (strategic saving) in the context of delivering the needed energy services through use of less energy (and not a reduction in services), and provide strategic growth.

• Energy audit of the power system is undertaken as a part of DSM to pinpoint excessive loss prone areas. Reduction of T&D losses in LT distribution system could be done through installation of amorphous core distribution transformers (AMDTS), and installation of LT switched capacitors for improvement in voltage level and power factor.

• Some emerging DSM techniques are Dynamic/Real Time Pricing, Time-of-Use Rates, Automated/Smart Metering and Web- based/Communication System.

• The provisions of the Energy Conservation Act, 2001 are expected to lead to widespread market development by better standards for appliances and equipment, energy efficiency labelling, rational cost-of- service based tariffs, Energy Conservation Building Codes, mandatory energy audits, awareness and training, financial and fiscal incentives (e.g., 100 percent accelerated depreciation). Amongst the enabling provisions in the Energy Conservation Act are needs for standards and labelling. This involves the notification of specified equipment and appliances through the manufacturers with the BEE, that would direct mandatory display of labels on these equipment and appliances.

• The thrust areas of BEE (Bureau of Energy Efficiency) are energy conservation in industry, demand side management, energy efficiency in buildings, energy conservation building codes, manager certification, and energy auditor, manuals and codes and energy efficiency policy research. The Electricity Regulatory Commissions have a substantial role to play in promoting energy efficiency and DSM measures.