In the electricity industry there are two ends one where energy is generated and the other where energy is consumed. The end which consumes creates a demand and accordingly regulates the increase in generation. The generation of electricity has a huge impact on the national economy, the environment and natural resources. So if we can manage the demand of the end users, then it would have a huge positive impact on the efficient use of resources and environment. So, ‘Demand Side Management’ (DSM) is used to refer to actions which change the demand on the electricity system by taking energy efficiency measures like switching of less expensive fuel resources, installation of stand by generators or PV modules to cater the base loads, better pricing methodology to have different pricing during peak and off-peak time of a day.
DSM programme is aimed to achieve mainly the following objectives:
- Energy Conservation: This can be achieved by reducing the overall consumption of electricity by reducing and better planning for heating, lighting, cooling, cooking and other functions.
- Energy Efficiency: Use of more energy efficient plans like:
- Bachat Lamp Yojana to promote energy efficient and high quality CFLs as replacement for incandescent bulbs in households.
- Standards & Labeling Scheme targets high energy end use equipment and appliances to lay down minimum energy performance standards.
- Energy Conservation Building Code (ECBC) sets minimum energy performance standards for new commercial buildings.
- Agricultural and Municipal DSM targeting replacement of inefficient pumpsets, street lighting, etc.
- Energy Efficiency Improvement in Small and Medium Enterprises (SMEs): To stimulate energy efficiency measures in 25 high energy consuming small and medium enterprise clusters.
- Load Management: The generating companies can schedule the timing of the load of their consumers in-order to reduce the huge discrepancy of load curve between peak and off-peak period of a day. This can be achieved by the following ways:
- Peak Clipping: This seeks to reduce energy consumption at the time of the daily peak by reducing load through switching off load intensive devices during peak load time.
- Valley Filling: This can be done by increasing load during the off-peak time like, doing some energy intensive works during off-peak time, in order to smooth out the load curve and efficient use of resources.
- Load Shifting: In this strategy, the energy intensive load during the peak time of the day can be transferred to off-peak time.
- Conservation: This involves use of devices with better efficiency.
The advantages of DSM can be lower energy bills, improved service by less grid failure, less environmental pollution, improved efficient allocation of resources and better grid stability by streamlining the load curve.