Airvoice Power Trading Private Limited
Inter State Trading of Electricity
Regulatory note
Demand Side Management (DSM)
Recommendation of Integrated Energy Policy for DSM














Demand Side Management (DSM)

Demand Side Management (DSM) programs are promoted and implemented under Govt. policies and regulations, Programs of Power Supply Utilities and by consumer participation. DSM programs refer to programs of Electricity Supply Utilities implemented by them to modify customer load profiles. Such programs have multitude of objectives.

Some important Objectives of DSM are:

(i) “Peak lopping” to reduce energy consumption during daily system peak. This is done by using technologically more advanced and efficient consumer end equipment on services like heating cooling etc.

(ii) “Valley filling” to build up off peak loads to flatten load curves improve system load factor and consequently more revenue.

(iii) “Load Shifting” which can be alone by Thermal Storage

(iv) Energy conservation at the consumer end by use of energy efficient equipment. Energy efficiency programs are to be considered along with the cost of achieving the energy conserved in comparison with the cost of procuring the quantum of energy that may have to be purchased i.e. cost in Rs. per KWh of conserved/ saved with that of energy procured/purchased.

DSM in Indian Power Systems

Historically, energy efficiency in India has gradually emerged from being a subject of advocacy and awareness building to that of a key frontrunner among the strategic options that are available to narrow the widening supply-demand gap facing the nation today. As a potent tool to advance sustainable development, energy efficiency has come into its own. Power Ministry has developed initiative to make power available to all by 2012 includes promotion of energy efficiency and its conservation in the country, which is found to be the least cost option to augment the gap between demand and supply. Energy conservation potential for the economy as a whole has been assessed as 23% with maximum potential in industrial and agricultural sectors.

Electricity Utility DSM Program:

There are 3 main categories of utility DSM programs:

Energy Conservation Program:- This is intended to be achieved by using equipment with improved efficiency, building and industrial processes.

Load management Programs:- This is achieved by redistributing energy demand to spread it more evenly i.e. load shifting program offering time of use tariff and interruptible power tariff rates etc.

Strategic Load growth program:- Programs that uncover cost effective electrical technologies that operate primarily during periods of low electricity demand.

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