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DSM Initiatives in China

Li Ze & Yang Jun

June 2011, Manila

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Why DSM?

High growth rate in electricity demand Energy constraint Environment constraint

DSM Rule
DSM Implementation Measures took effect in 2011 Highlights:
DSM

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as a resource (IRP concept) DSM obligation

GridCos ESCOs

and end users involvement mechanisms

Incentive

Integrated Resource Planning

To meet power demand,both energy conservation and new project development should be considered. Demand side approach should have the priority. As a resource, DSM should be included in social-economic and power sector planning

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Utilitys Obligation

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GridCos are responsible for implementing DSM Guide customers to implement DSM programs Establish DSM information system Provide technical support and information service for customers DSM efforts DSM efforts within GridCos

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Energy Efficiency Targets

Clarify EE targets for Gridcos lProvincia GridCos shall achieve a saving of 0.3% in sales volume and 0.3% in maximum sales load compared with previous year

Incentive Mechanisms
Allow Gridcos to recover their DSM related costs through tariff Flexible pricing mechanisms to encourage demand response time of use price, seasonal price interruptible load price differentiated price stepped pricing ( is expected soon)

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Funding for DSM

Funding resource for DSM Existing surcharge Premiums from differentiated price Fiscal budget Legitimate expenditures Cost for load management systems development and operation Fund for pilots, demonstration projects and key projects Compensation for load management Capacity building and publicity expenses

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Developments in Practices
ESCOs play an important role
Efficiency Power Plant Practices in some provinces

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Thank you