Energy Resources:

Demand side management

 What is Demand side management?
 Also known as Energy demand management, or demand-side response
(DSR)
 consumer demand modification for energy Include purposes such as load
management, energy efficiency, strategic conservation, financial
incentives, behavioral change and related activities.[5]
 Used to modify electricity demands to improve energy efficiency and
reduce energy consumption for a given output.[1]
 According to MOP, India: “Actions of a utility beyond the customer's meter,
with the objective of altering the end-use of electricity – whether 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”[6]

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 Objectives: Demand side management

3 Main objectives of demand side management. Qureshi et al., 2011 5/29/2019

 Objectives: Demand side management
 Reduce peak electricity demand expand network capacity to cut more energy
sources to be connected to the grid.
 Utilizing significant source of electricity to minimizing the capital costs for
development of new generation plants and larger network.
 Consumer awareness of efficient product and services for the adoption of the
new technologies. [9]
 Improve final electricity-using systems reducing consumption, with same level
of service and comfort.
 Energy Efficiency – reducing overall energy consumption.
 Peak Load Management – reduce peak demand, change the peak hours and
shift the peak loads.
 Demand Response – reducing peak demand for short periods of time for a few
days during the year.
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 DSM: Available Resources
 A diverse scheme for customers through programs, tariffs, and
procurements by the utility(NEA) or third party:
a. Energy Efficiency strategies to reduce energy use: efficient
lighting, HVAC, appliances, and other items.
b. Demand Response incentives to shift energy usage (industrial
supplies) peak hours to off peak hours.[4]
c. Customer generation
d. Energy storage
e. Alternative fuel vehicles (e.g., electric vehicles)
f. Water-energy conservation.

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Available Technologies demand side management
A. Load leveling
reducing consumption at peak times ("peak shaving") to maximize use of
efficient base load generation and reduce the need for spinning reserves.

(Source: Gyawali,
2012)

a) Peak clipping – demand peaks (high demand periods) are “clipped” and
the load is reduced at peak times. focuses on reducing peak demand.
b) Valley filling – Low demand periods “filled’ by building off-peak capacities.
Eg: thermal storage
 Technologies used in demand side management
c) Load shifting – loads are “shifted” from peak to valley times (achieving
clipping & filling). Eg: storage water heating, storage space heating,
coolness storage, and customer load shifting. Shifting is different to
clipping as the load is present in shifting whereas in clipping it is removed.
B. Load control: Energy management control systems (EMCSs) can be used to
switch on/off electrical equipment for load leveling. Some EMCSs enable
direct off-site control applied to heating, cooling, ventilation, and lighting
loads, EMCSs reduce peak demand for grid electricity by installing new
generators. Energy storage devices located on the customer's side can be
used to shift the timing of energy consumption.[3]
C. Electrification technologies: electric transportation instead of gasoline.[7]
D. Flexible load shape technologies: enable integrated grid by dynamic control
& response to both the consumer’s load & to the use of distributed generation.
 Current status of DSM in Nepal
 NEA plans to launch energy efficiency awareness programs, appealing people to
switch to LED lights from CFL and traditional bulbs.
 ujyalo aabhiyan implemented by NEA
 Rating of devices on the basis of energy efficiency by NEEP
 NEA Plans for distribution planning incorporating demand side management and
loss reduction.
 Controlling electricity demand leakage due to oversized fuse or MCB, meter, stock
units and under billed demand charge.
 Around 30 MW has been saved no inverters charging anymore.
 Managing peak hour demand. NEA has prohibited industries from operating at peak
hours 4.30 pm and 8:30 pm.
 Reduce NEA's system loss by 3.5 % points from 25.78%.
 NEA MD visiting LDC and monitoring consumer behavior & appealed people not to
use iron, water pump and energy intensive appliances during peak hour.[10]
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 DSM Policies
 Energy Efficiency Standards and Labeling (S&L) programmes, implemented
in over 60 countries.
 In India, Bureau of Energy Efficiency(BEE) in 2006, launched the national
energy labeling on 5 star basis for energy performance standards and
voluntary/mandatory energy labeling programmes labeling compliance in
January 2010.
 CFL price discounted 50% by Reliance and Freely distributed
 Utility based Demand Side Management Programmes: US as a whole
investment of 0.5% of revenues in DSM programme resulted into a savings
of 1.9% of revenues.
 Education and Awareness Creation on using CFL and not using large loads
at peak hours were conducted by Nepal government.
 Banning or Phasing out of Inefficient Products
 Integrated Multi Stakeholder Approach as an Effective Strategy: NEEP
 Rationalizing Electricity Tariff[12]
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 Discussion
 “We only observed the energy demand pattern of consumers and managed
the demand accordingly & are efficiently managing energy available from
different sources” –Kulman ghising
 NEA implemented DSM to eradicate load shedding schedule.
 NEA distributed CFLs in 2013 without proper documentation so results could
not be analyzed.
 ‘Bright Nepal, Prosperous Nepal’ under its policies and programs for the F.Y.
2014/15. The campaign focused on energy development and by saving the
energy through demand side management by promoting use of high efficiency
Light Emitting Diodes (LED) Lamps in place of Incandescent Lamps.
 DSM for individual users or cooperative consumers, deterministic DSM and
stochastic DSM and day-ahead DSM versus real-time DSM
 Programmatic CDM(pCDM) has been implemented for adoption of less GHT-
intensive technologies. Replacing Bulbs with CFL & LEDs.
 NEEP(Nepal Energy efficiency program) under GTZ(German Technological
INGO) actively working.
 Rationalizing Electricity Tariff using Time of day metering in industries.
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 Strength, weakness, opportunity and threats.
Strength: Weakness:
1. Already implemented efficient 1. Lack of technical ability
lighting system.
2. Lack of awareness.
2. Separate generation,
transmission and distribution 3. Lack of sufficient capital for DSM
companies under NEA. implementation.
3. Cross boarder transmission 4. Absence of matured DSM policy

Threats: Opportunity:
1. Subsidized electricity pricing. 1. Private public partnership.
2. Political instability. 2. Direct invest opportunity by
3. Lack of continuity in
people.
institutional energy efficiency 3. Direct trade of energy efficient
incentive programmes
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devices. 5/29/2019
Conclusion and recommendation
 Major strategies
a. alternative electricity pricing
b. direct & indirect financial incentives
c. consumer education and direct customer contact
d. trade ally cooperation
e. advertising & promotion
f. building codes & efficiency standards.[8]
 DSM has been applied recently by NEA.
 DSM is not only an option.
Recommendations:
 Behavioral and analytical DSM using artificial intelligence.
 Stochastic optimization of the integrated power system.
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 References:
1. S. Saini, “Demand-side management module,” Sustain. Energy Regul. Policymaking Africa, pp. 1–100, 2007.
2. S. Shrestha and A. M. Narkarmi, “Demand Side Management for Electricity in Nepal: Need analysis using LEAP Modeling Framework,” Proc.
IOE Grad. Conf. Tribhuvan Univ. Kathmandu, pp. 242–251, 2015.
3. K. Gyawali, Demand Side Management in Industrial Sector of Nepal, M. Sc. Thesis, IOE Pulchowk Campus, Nepal, 2012.
4. California public utilities corporation website: http://www.cpuc.ca.gov/demand_side/ Retrieved on: June 10 2017.
5. Wei-Yu Chiu; Hongjian Sun; H.V. Poor (June 2013). "Energy Imbalance Management Using a Robust Pricing Scheme". IEEE Transactions on
Smart Grid. 4 (2): 896–904. doi:10.1109/TSG.2012.2216554. ISSN 1949-3053.
6. Demand side management, Bureau of energy efficiency, Ministry of power. 〈http://www.beedsm.in/〉.
7. Gellings, C. W. (2017). Evolving practice of demand-side management. Journal of Modern Power Systems and Clean Energy, 5(1), 1-9.
doi:10.1007/s40565-016-0252-1
8. Demand side management. (2017, 06 12). Retrieved from Banglore electricity supply company limited: http://bescom.org/en/frequently-
asked-questions/dsm/
9. Objectives of demand side management. (2017, 06 12). Retrieved from Nine Scottish and southern electricty networks:
https://www.ninessmartgrid.co.uk/our-trials/demand-side-management/
10. Pangeni, R., 2016. Demand side management works wonder to reduce power cuts. [Online] Available at:
http://www.myrepublica.com/news/8926
11. Barbato, A. C. A., 2014. Optimization Models and Methods for Demand-Side Management of Residential Users: A Survey. Energies, Volume 7,
pp. 5787-5824.
12. “Strategizing Demand Side Management in the Residential Sector in Developing Economy: A Step towards Tackling Global Climate Change
Concern 1 Saurabh Gupta and Atul Kumar,” pp. 1–33.

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