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Outlines as per the syllabus

1. Introduction and advantages of Demand Side Management
2. Consumer classification and their demand characteristics

Demand Side 3. Effective Demand Side Management Techniques

4. Causes and disadvantages of Low Power Factor and different techniques to

Management improve Power Factor

5. Types of tariff: Simple tariff, Flat-rate tariff, Block-rate tariff, Two Part tariff,
A lecture for 4th year BEL Students Maximum demand tariff
6. Tariff System in Nepal

Load management Requirements of load management

program
 In the past, the power utility company supplied electric energy to
meet all customer demands.  reduces demand during critical system load periods.

 Recently, customer load management is considered as an alternative  results in a reduction in

to partly avoid capacity expansion.  new generation requirements,
 purchased power,
 financial constraints  fuel costs.
(high project cost, high cost of labor, materials and interest
rates),  acceptable cost/benefit ratio.

 environmental concerns  operates at an acceptable reliability level.

 high cost of fuels  acceptable level of customer convenience.

 benefit to the customer in the form of reduced rates or other incentives.

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Introduction to Demand Side
Management
What is DSM?
 Traditionally DSM means reduction of peak electricity
demand
 DSM is the planning, implementation and monitoring
of those utility activities designed to influence
customer use of electricity in ways that will produce
desired changes in the utility’s load shape, that is,
changes in the time pattern and magnitude of a
utility’s load. (Clark W. Gellings)
What is DSM?
 Actions of a utility to alter the end-use of
electricity to increase and decrease demand, shift
between high and low peak periods, manage when
there are intermittent load demands in the
overall interests of reducing utility and consumer
costs
 Any program carried out by the utility on the
customer’s premises that helps manage the
electrical usage by the customer there by
producing desired changes in the utility load
shape such that it reduces the unnecessary,
costlier expansions and reduces overall cost of
the system.
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Demand-Side Management
 First introduced in 1981 as “Demand-Side Load Management” by Clark
W. Gellings.
 Changed to “Demand-Side Planning”.
 And then changed to “Demand-Side Management”
What is DSM?
 Any program intended to influence the customers’ use of
electricity is considered as DSM
 DSM must achieve selected objectives of reduction in
average rate of electricity, improvement in customer
satisfaction
 DSM should be evaluated against non-DSM alternatives
(rehab of Power Station, Loss reduction program etc.)
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 DSM identifies how customers will respond not how they should
respond 6
Why DSM?
 Reliability and network issues— reducing demand in ways which
maintain system reliability (reduction in possible outages, blackouts )
 Improved markets—short-term responses to electricity market
conditions (“demand response”), particularly by reducing load during
periods of high market prices caused by reduced generation or
network capacity.
 Cost reduction—various energy efficiency efforts are introduced with
reducing total costs of meeting energy demand
 Environmental and social improvement-reducing use of energy
leading to reduced greenhouse gas emissions (mainly for fuel based
energy production)
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Inefficient Electricity Pricing

Why DSM?  Generally, electricity rates are set to recover the average costs of all utility
resources which includes, high-cost plants and power purchase contracts.

 And such rates do not reflect the true cost of supplying electricity.
 Inefficient Electricity Pricing
 T&D Cost Savings  For example, a high load factor customer may pay the same rate as a low load
 Reduce Large Capital Investment factor customer, though it costs much less to supply the former.
 Reduce Losses
 As a result it would be beneficial to use distributed resources (i.e., DSM).
 Uncertain load growth
 Uncertain fuel costs
 Shortage of government funding for generation project T&D Cost Savings
 Absence of foreign capital for generation project
 Environmental benefits
 The most significant potential for DSM lies in application with substantial
transmission and distribution cost savings.

 With DSM transmission and distribution (T&D) cost could be avoided.

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Reduce Large Capital Investment

 With DSM, investment in large generation capacity could be
avoided.
 As a result investment requirement will be lower.
Reduce Losses
 One of the main attractiveness of DSM is that it is located
near the load center that will minimize the transmission
loss compared to electricity transmitted from the central
generation.
 Higher the losses in the transmission system the more
attractive is DSM.
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Benefits of DSM
 Reductions in customer energy bills through efficiency and
conservation measures
 Reductions in the need for new power plant,
transmission and distribution networks
 Creation of long-term jobs due to new innovations and
technologies
 Reduction in air pollution
 Reduced dependency on foreign energy source
 Reductions in peak power prices for electricity
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WHAT DRIVES DSM? Demand Side Management

 For utility companies, reduction or shift of a
Activities
customer's energy demand facilitates delaying 1. Direct Load Control
building additional generating capacity 2. Thermal Storage
3. Cogeneration
 For customers, DSM offers the opportunity to
4. Electrification
reduce their energy bill through efficiency and
5. Energy Substitution Program
conservation measures
6. Energy Efficiency Improvement
 For industrial customers, lowers production costs 7. Electricity Pricing
and a more competitive product 8. Intelligent Motor Controller
 For domestic customers, save money that could 9. Power Factor Correction
be spent on other household commodities 10.Labelling and Standardization
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Direct Load Control Direct Load Control

 It is related to the alteration of a customer’s end use  Whether the load is directly controlled by the utility or by the customer,
appliance in order to change the level of maximum it is assumed that there exists an agreement between the utility and the
customers for the load control arrangement.
demand and thus the system load.
 Utilities may control customer’s load either through
remote controlled signals or locally at the point of use.  With prior agreement (voluntary)
 Control Devices: Time-Switch, Thermostat, Current Limiter, Remote
 Major types of devices used for the purpose include time
Control, etc.
switch, thermostat, current limiter.
 Air Conditioners, Water-heaters, Space-heaters, Irrigation pumps
 The loads that are generally considered for direct control
are air conditioners, water heaters, space heaters and
irrigation pumps.  Without prior agreement (involuntary)

 Customer load control could also be achieved in response  Scheduled load curtailment
to the price signals given by the utility.  Unscheduled load curtailment
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Thermal storage:

Thermal Storage Storage cooling; Storage heating; Storage water heating

Storage cooling
• to extract heat from a storage medium at night and use the medium to
 Major Targets: Water heating, and Space Conditioning absorb heat from the building’s interior space the following day.
• Upto 80% demand of air conditioning can be shifted to off-peak
 This technique is useful to achieve strategic load
growth through valley filling in load profile and for load Chilled water storage
shifting. Water is chilled to 40-42 degrees F at night and stored in a large tank for
circulation to fan coil units in the building to provide daytime cooling.
 This option involves the use of an equipment that can
vary energy input while maintaining the energy Ice storage
delivery schedule. • Water is chilled to 32 degrees F and frozen
• Enhanced storage capacity. The volume of the container required for ice
 In water heating application, heat is stored during the storage is only 15 to 20 % of that required for chilled water storage.
off-peak period and is used during the peak period.
Eutectic salt storage
 Inair cooling applications, coolness storage systems are • This is a storage medium in common use.
used to reduce the peak time load caused by air • Advantage of a freeze point of 47 degrees F which reduces energy
conditioning units. requirements.
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Storage Heating
High temperature storage
 Storage heating equipment are heaters with a brick-like, refractory, core material
Cogeneration
 Heated by electric resistance heating elements, to 1300-1400 ˚F during off-peak
 Electric energy is converted to thermal energy and stored in the core for use as
called for during a peak hour  It utilizes the waste heat from the production of electricity in
thermal plants and industries
Low temperature storage  Co-generation - Combined Heat and power (CHP) systems –
 uses water as the storage medium. Industries that use boilers for its own production purpose use
 stores hot water in a large, pressurized tank. the energy in the steam as well as the gas to produce
electricity also.
 maximum hot water storage temperature is about 280 ˚F.
 It is feasible to supply for district heating (space heating and
water heating at multiple sites fro a central source)
Storage space heating
 thermal storage in conjunction with a standard space heating techniques to  Energy can be generated as by-product in an industry utilizing
 achieve peak clipping or load shifting benefits
the waste material and waste heat in any process or chemical
industry
 on-peak space heating from thermal reservoirs charged during off-peak hours.
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Electrification Energy Substitution Programs

 Major Targets: rural electrification, electric transport
systems, and fuel substitution in industrial appliances.
 Expanding electrification to rural areas, electrification of
transport system, or use of electricity to substitute fossil
fuels in industrial appliances could increase the system
load.
 Such an option is obviously relevant for strategic growth
of demand in the case of a utility that faces
underutilization of its capacity.
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 Uses of Alternative and clean source of energy as an
alternate source for the purpose of heating, lighting and
other general purposes.
 Solar Energy can be utilized for lighting, space heating
and water heating by the end users as per the feasibility.
 Improve building design to introduce more solar lights into
the buildings
 Uses of Bio-gas and other bio-fuels for cooking and heating
purposes
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Energy Efficiency Improvement Building Envelope Programs

Improvement of efficiency in energy use. It covers
major end-use and associated appliances. Major
programs are:  These are related to thermal performance of
building.
 BuildingEnvelope Programs (Building Insulations and  These program aim at reduction in energy
Reduction of Air Infiltration). consumption through
 Improved Air Conditioner Efficiency.
 Installationof natural or synthetic insulation in
 Improved Water Heating Efficiency. buildings, and
 Energy-Efficient Motor-Systems.
 Reduction of air infiltration e.g. sealing structural
 Energy-Efficient Appliances and Uses. cracks and joints.
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Improved Air Conditioner (AC) Improved Water Heating Efficiency

Efficiency and Energy Efficient Appliances
 Use of more efficient AC units can contribute to  Water heating is one of the major users of electricity in
residential and commercial buildings in some countries.
reduction of customer peak demand and the
utility’s peak load.  Significant efficiency improvements are taking place in the
technology of electric water heating.
 Considerable fuel economy has been reported in  Energy efficient appliances mainly include refrigerators, rice
new generations of ACs. cookers, freezer and lighting in the context of a developing
country utility.
 The ownership of other appliances e.g. electric range,
microwave ovens, cloth washers while sizable in industrialized
countries is mostly insignificant in developing countries.
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Energy Efficient Appliances and Uses

Description 60W 43W 15W CFL 12W LED
Traditional FTL
 Efficient lighting Incandescent
Investment 40-60 250-300 200-350 2000-3000
 Efficient Appliances
% Energy Saving - ~25% ~75% ~75-80%
 Efficient Building Equipment
Annual Expenses NRs.683 NRs.561 NRs.196 NRs.157

Life 1000 h 3000 h 10,000 h 25,000 h

Replacement Cost - 1/3 1/10 1/25

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Daily 6 hours of usage @ NRs.5.96/Unit as of 2014 average tariff of NEA

REFRIGERATORS
 New refrigerators consume 75 percent less energy
than those produced in the late 1970s.
 Star-qualified model, saves an additional 15 percent
or more by employing better insulation, more
efficient compressors and more precise
temperature control and defrost mechanisms.
 Freezers on top use 10 to 15 percent less energy
than a side-by-side model.
 One large refrigerator will use less energy than two
smaller ones.
DISH WASHERS
 The most efficient dishwashers use less hot water,
have energy-efficient motors and use sensors to
determine the length of the wash cycle and the water
temperature needed to do the job.
 An energy-saving cycle that allows dishes to be air-
dried with circulation fans, rather than heat-dried
with energy-wasting heating coils.
 Dishwasher having "light wash“ is recommended.
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CLOTHES WASHERS
 Most of a washer's energy consumption goes to
heating water. Amount of water used can be reduced
to make double of the energy efficiency.
 The right size of washer means better efficiency
 A washer with adjustable water levels. This provides
the option to use less water to wash small loads.
 A washer with a faster spin speed.
Varieties of Energy Efficient End Uses are in
applications:
 Efficient Micro-Oven: High-frequency radio waves to
penetrate the surface of food to heat water
molecules inside
-80 percent less energy required than conventional
ovens
 Energy Efficient Air Conditioning System:
- Higher seasonal energy efficiency ratio (SEER) and
energy efficiency ratio (EER) ratings
- Cost less to operate and can pay back the extra
initial cost many times over during their lifetimes.
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Electricity Pricing

EFFICIENT BUILDING EQUIPMENT:  Electricity tariff policy should be consistent with

economic principles and are reflected in the Long-
Run Marginal Costing (LRMC).

 It should also ensure the financial viability of the

Utilities and take into account countries’ social
objectives

 NEA is facing a loss of Rs 2.39 on every unit of

electricity it sells

 Generation and Demand mismatch

Energy consumption in the building sector is 5% higher in 2050 than in
2007 in the BLUE Map scenario.

RURAL DEMAND SCENARIO

Time-of-Use Rates
• Higher rate during peak period and lower rate during
off peak periods
• Main objective is to reduce peak demand and
encourage off peak use.
• FEATURES:
 TOU-DAILY PROFILE
 TOU-SEASON
 PUBLIC HOLIDAYS
 SPECIAL DAYS
 WEEKENED
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DEMAND SIDE MANAGEMENT

ACTIVITIES, TECHNIQUES & BARRIERS Intelligent Motor Controllers

• An intelligent motor controller with software driven

optimizes demand for the end user by managing the
energy demands of induction/universal motors.
• A large sized motor delivers a demand spike to the
system during start-up forcing the system to
generate to meet this demand.

T
a
r
i
Tariff --3 Tariff --2 Tariff --1 f
f

• There is a demand charge (penalty) for the user though it Definition of Power Factor PF = kW/kVA or MW/MVA
is an instantaneous spike in its kVA. NEA rate: PEAK LOAD OF NEA = 1200MW
 Rural & Domestic: NRs. 55/kVA POWER FACTOR (PF) AT PEAK LOAD = 0.9
 Small Scale Industry:NRs. 100/kVA
MVA REQUIRED AT PEAK LOAD = 1333.33MVA
 Commercial: NRs. 295/kVA
NEW POWER FACTOR (PF) AT PEAK LOAD = 0.96
 Water Supply: NRs. 210/kVA
NEW MVA REQUIRED AT PEAK LOAD = 1250 MVA
• With intelligent controllers a plant should be able to NET SAVING IN MVA GENERATION = 83.33MVA
reduce its subscribed capacity. EQV.
75MW AT 0.9PF
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66kV BUS
RELEASES GENERATION
RELEASES TRANSFORMER
33KV, 10MVAR BANK
CAPACITOR UNITS
-EXTRA CAPACITY ENHANCED IN SERIES /PARALLEL
HELPFUL TO DSM

11kV BUS

PARTLY FEED TO FEEDERS

REACTIVE GENERATION

End-Uses of Electricity

Why do we need electricity?

 Lighting
 Cooking/heating
 Utilities and governments even offers rebates on
Energy Star-rated models  Space heating/Cooking
 Motive power
 The label displays an energy efficiency rating (EER)
 Direct heating
in large black numbers. The label allows you to
compare the typical annual energy consumption.
The higher the rating, the more efficient the
appliance. Units with an EER of 9.0 or above are 44

considered very efficient

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Types of End-Use Residential End-Uses

Sector End-Use
Residential/Commercial Lighting  Residential  Cooking heater
Space Heating/Cooling
 Lighting  Room heater
Cooking
 Incandescent  Water Heater
Industrial Indirect Heating
Direct Heating  Fluorescent  Rice Cooker
Motive Power  Washing machine
Lighting
 Refrigerators
Agriculture/Irrigation Motive Power  Fans  Radio
Transport Motive Power  Air Conditioners  Television etc

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Commercial End-Uses Industrial End-Uses

 Lighting  Motors
 Incandescent  Pumping
 Fluorescent  Fans
 Mercury Vapor  Air compressors
 Sodium Vapor  Refrigerators
 Heating  Lighting (Incandescent, Fluorescent,Mercury Vapor,
Sodium Vapor)
 Air Conditioning etc
 Electric Arc Furnace
47  Electrolysis 48
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Analysis of Consumer Load Curves Load Curve

 Load curve is a chart illustrating the variation in

demand/electrical load over a specific time frame either
daily, weekly, monthly or yearly
 Load profile will vary according to customer type
:residential, commercial and industrial as well as seasons
 Also called chronological load curves (CLC)
 CLC can’t be generalized by mathematical functions

49 50

Demand factor
 It is the “ ratio of the maximum demand of a system to the total connected
load of the system”
 It is usually less than 1.0. It is an indicator of the simultaneous operation of
the total connected load.

Connected load
 It is “the sum of the continuous ratings of the load-consuming apparatus
connected to the system”.

Plant factor
 It is the ratio of the total actual energy produced or served over a period
of time to the energy that would have been produced or served if the plant
had operated continuously at maximum rating. Capacity factor or use
factor.

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Load factor
 It is “the ratio of the average load over a designated period of Diversity Factor
time to the peak load occurring on that period”

it is affected by social patterns and weather conditions

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Coincidence Factor

Its reciprocal of diversity factor

Where Di = maximum demand of load I, disregarding time of occurrence.

Dg = D1+2+3+…+n
= coincident maximum demand of group of n loads.

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Load Factor of Consumers

S.N Consumer Category Load Factors Innovative Rates of DSM
A High Voltage (66kV and
above) 60%
A1 Industrial
B Medium Voltage (11kV
and 33kV)  Time-of-Day Rates, Off-peak Rates
B1 Industrial 45%
Commercial
Non-Commercial
40%
40%  Seasonal Rates
Irrigation 15%
Drinking Water
Transport
35%
40%  Inverted Rates
C Low Voltage (400 & 230V)
 Promotional Rates
C1 Domestic 30%
C2 Industrial 30%
C2.1
C2.2
Cottage
Small
40%
40%
 Maximum Demand Charge for Residential
C3
C4
Commercial
Non-commercial
11%
11% Customers
C5 Irrigation 11%
C6 Drinking Water 35%
57  Conservation Rates
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Time-of-Day Rates Seasonal Rates

• Time-of-day rates—where utilities have different charges
for power use during different periods: higher peak time
charges would encourage a user to run high load
activities in an off-peak period when rates are lower its
objective is to reduce peak demand and encourage off
peak use.
• Real-time pricing, where the rate varies based on the
utilities load (continuously or by the hour) its objective
is to reduce utility’s capacity requirement
 Rates according to season to reflect the seasonal variation in cost of
generation
 Useful in hydro-dominated system
 These rates differentiate among the seasons in which the energy is
consumed.
 These rates may be combined with flat rate
 TOD and seasonal rates are also know as Time of Use (TOU) rates

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Inverted Rate Demand Charges

 Customer pay more for each unit of electricity consumed in later tail blocks

 The first block may or may not consist of a life line rate  Maximum Demand Charge for Residential Users
 Nepal Electricity Authority adopts inverted rate with life line rate for (2-Part Residential Tariff)
domestic consumers
 encourages customers to spread their load
 can encourage the use of efficient appliances
Incentive for customer to improve load factor

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Conservation Rates and Promotional

Rates
 Conservation Rates
 Reduced rates for buildings with prescribed level of thermal insulation, peak saving
solar appliances or meets minimum energy efficiency standard

 Promotional Rates
 These rates are designed to attract targeted group of customers to a utility service
area.
 Offer discount in return for expected load reduction

63 DEMAND SIDE MANAGEMENT (DSM) BY AJAY SINGH 8/12/2021 64

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Objectives of DSM Objectives of DSM

 Peak Clipping: where the demand peaks (high
 Load Shifting – shifting load from peak to off-
demand periods) are “clipped” and the load is
peak, loads are “shifted” from peak to valley
reduced at peak times, peak load pricing, direct
times, achieving clipping and filling such as
load control of customers with the objective is to
storage water heating, storage space heating
reduce peak load
 Strategic Conservation –end-use energy
efficiency improvement, it’s the main objective
 Valley Filling: where the demand valleys (low of DSM efforts
demand periods) are “filled” by building off-peak
loads such as water heating and space heating
loads, battery charging, off-peak pricing;
objective is to increase electricity sales
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Objectives of DSM Peak Clipping

Strategic Conservation

 Strategic Load Growth –objective is to

increase electricity sales, growth may include
electrification due to new emerging electric
technologies surrounding electric vehicles, Valley Filling
Strategic Load
Growth

industrial process heating and automation.

 Flexible Load Shape – flexible load curve that
can accommodate demand and utility’s
operational characteristics. Utilization of wet Load
Flexible Load Shape
Shifting

season surplus energy and reduction of demand

in dry season in a hydroelectric system.
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Objectives Evaluation of DSM

Different utilities may place different priorities on these
objectives Appliance T&D Emission
Operating Hours Losses Factors
Existing
Priorities of an utility could be different between short-, and Appliance Data
long-term End-use Electricity Potential for
Electricity Generation Emission
Savings Avoided Mitigation
Efficient
Appliance Data

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Evaluation of DSM

There are mainly two types of load curtailments adopted in NEA

 Avoided Electricity Generation
 SCHEDULE LOAD CURTAILMENT (MANUAL
 Total Generation Avoided SWITCHING)
 Avoided Peak Demand
 Division of Consumers Groups: 1 to 7
 Time Management-1 or 2 times within 24 hours
 Load Management-Feeder wise

 UNSCHEDULE LOAD CURTAILMENT (AUTOMATIC)

 Frequency Based Curtailment
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-Under Frequency <f
-Rate of Change of Frequency >df/dt
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AUTOMATIC CURTAILMENT BY Time-Switch

IN CASE OF MANUAL LOAD SHEDDING, FOLLOWING

PROBLEMS HAVE BEEN FOUND:

 HIGH VOLTAGE CUNSUMERS DO NOT FOLLOW THE

SCHEDULE STRICTLY
 UTILITY STAFFS DO NOT MAINTAIN THE RULE
STRICTLY
 HUMAN ERROR CAUSES EITHER INCREASE OF
FN LOADS OR CAUSES UNDESIRED OUTAGES
TIMER SWITCH DEVICE CAN BE USED FOR AUTOMATIC LOAD
F1 F2
CURTAILMENT:
SWITCHING ON AND OFF THE FEEDERS AS PER
PRE-DECIDED TIME SCHEDULE.
UNDER/OVER FREQUENCY RELAYS NO MIS FUNCTION DUE TO SEALING ARRANGEMENT

Activities Barriers
• Reduce utility’s capacity requirement
End-use Efficiency Technical, financial,
• Reduced demand charge for participants regulation
Tariff Adjustment Effectiveness of pricing,
• Offer discount in return for expected load loss of utility revenue
reduction
Power Factor Improvement Technical, financial,
• Interruptible Credits regulation, information
Intelligent Motor Controller Technical, financial,
• Incentives-based on net costs avoided by utility regulation, information
• Rate Options: Based on frequency, maximum Labeling and Standardization Regulation
duration and magnitude of interruptible load. Load Curtailment /Automatic Load Consumers acceptance,
Curtailment Public complaints, loss
of revenue
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Power Factor Improvement Power Factor Correction

A. By Use of Static Capacitor

kW
1. Shunt Capacitor 2

kVAr2
2. Series Capacitor
B. By Use of Synchronous Machine 1
1. Synchronous Motor
2. Synchronous Condenser

kVAr1

kVArC
C. By Use of Phase Advancers
Active power =P (kW)
D. Others
Reactive Power = Q (kVAr)

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Apparent Power = S (kVA)

Methods of Power Factor Correction Calculation of Required Capacitor Ratings

MDB kVAr ( required )  kW (tan 1  tan  2 )

C Central Compensation
Where,
kW = Present Load in kW
SDB1 SDB2 SDB3
C 1 = Existing phase angle
Group Compensation
 2 = Corrected phase angle
(tan 1  tan  2 )  Correction factor
M C M C M C
Individual Compensation
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By Use of Synchronous Machine By Use of Synchronous Machine

 The power factor of the synchronous machine can be  Synchronous Motor

made leading by simply changing the excitation. Hence
these devices can be employed for p.f correction
 Various Synchronous machine used are:-
– Synchronous Motor
– Synchronous Condenser
For constant speed application Synchronous Motor having
leading p.f. of about 0.8 can be used.
 Synchronous Condensers
These are overexcited Synchronous Motor running at no load.

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Advantages Drawbacks

 Finer control can be obtained by variation of field  Costlier

excitation
 Helps in voltage regulation
 Improves system stability and reduction of the effect of
sudden changes in load owing to its inertia
 High maintenance and operating cost
 Low efficiency then static capacitor
 Noisy
 Starting is cumbersome

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By use of phase Advancers By other means

 Phase advancer is a simple AC exciter which is connected  Special types of machine such as synchronous
on the main shaft of the induction motor and operates for induction motor, high pf motor like compensated
power factor improvement
induction motor, Schrage motors etc.
 The poor p.f of an induction motor is due to the fact that
it takes lagging current 90 degrees out of phase with the
voltage
 This exciting out of phase current if supplied from a
different source helps to improves it pf.

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Thank You!!!

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