Swami Keshvanand Institute of Technology,

Management & Gramothan, Jaipur

Department of Mechanical Engineering

Course: Energy Management (8AG6-60.1)

Lecture: 06
Strategies for DSM and Reasons to be
concern for DSM
SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Lecture Outcomes
After studying this lecture, a student will be able to-
 Discuss various strategies for Demand Side Management.

 Clarify the reasons for concern about DSM.

 Elaborate the affect of DSM over Power Purchase Price.

 Highlight the importance of DSM across various consumer

groups.

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Coverage
 Strategies for Demand Side Management

 Why we are concerned

 How DSM affect the Power Purchase Price

 Importance of DSM across various consumer groups

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Strategies for Demand Side Management

 Strategies
– Energy Conservation
– Peak Clipping
– Load Shifting
– Flexible Reliability
– Strategic Load Growth
– Valley Filling

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Energy Conservation

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Peak Clipping

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Load Shifting

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Flexible Reliability

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Strategic Load Growth

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Valley Filling

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Comparison of Strategies for DSM

Aim Impact on peak Impact on energy
demand demand
Reduce the overall energy
demand (energy conservation)

‘Clip’ demand at peak load

periods (load levelling)

Shifting to off peak hours (load

levelling) No change

Induce change in load as per

supply (load controlling) also may reduce
known as flexible load shape
Promotion of applications may increase
requiring electricity – electric
vehicles
Increasing load during off peak No change Increases
hours (load levelling)

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Why are we concerned for DSM?

Unreserved Demand
 Peak and energy shortage at around 5%.
 About 300 million consumers are not
 connected to grid.
 Average load shedding of 6-10 hours in many states.
 According to World Bank estimates, almost 7 % of annual
sales of Indian firms is lost as a result of electrical outage,
compared to 3 % across the world.
 Additional peak or base load generating capacity,
transmission and distribution facilities required to serve
the unmet demand.

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Why are we concerned for DSM?

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Why are we concerned for DSM?

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Why are we concerned for DSM?

 constraints in capacity addition

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Why are we concerned for DSM?-Rising Power Prices

 Average electricity prices are
highest in India amongst the
BASIC countries.
 Increasing trend in tariff bids by
generators in competitive bids
over the last 3-4 years.
 Average price will tend to
increase due to the increase in
land cost, O&M, and fuel cost.
 Prices will increase further if Case 1 Long term bid prices – INR/Unit
environmental compliance is
made stringent.
Continuous
Increase in land
increase in fuel
price
cost

Increasing Increasing
Operating and environmental
Maintenance Cost compliance cost
SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Why are we concerned for DSM?-Rising Power Prices

Case 1 Long term bid prices – INR/Unit

SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Why are we concerned for DSM?-Rising Power Prices

Long term bid prices – INR/Unit
SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Why are we concerned for DSM?

Environmental Impact
 In July 2019, coal-based power plants accounted for
140GW, i.e. almost 62% of the total installed capacity while
contributing 71% in the total generated electricity.
 Out of the total 1,100 million tonne of GHG emissions from
the energy sector in 2007, emissions from electricity
generation was 719 million tonne (CO2-eq) and 90% of
this came from coal power plants.
 SPM, NOx, SOx and Hg are the other critical air pollutants
of concern from a coal power plant.
 About 80 GW coal power addition is planned in the 12th five
year plan.
 Other environmental impacts during mining and
transportation.

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

How does DSM affect the power purchase price?

Reduce/shift Demand Price

demand Reduction Reduction

ddd Price of
Reduce/shift
Demand

aaa Electricity
o
llloo demand
III Demand
SSS during peaks Economic DemandDR
UUU Benefit Supply
Limit of
generation/ P Price
network capacity Reduction

PDR

Demand
Reduction

TimeTimee QDR Q Quantity

SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Importance of DSM across various consumer segments

Agriculture Residential Commercial Industry

Existing tariff Low Medium High Very High

Applicable
Subsidy by Government High for low end None None
consumer

Savings potential High High Medium Medium

Incentive for
consumer to invest in
Low Medium High Very High
Energy Efficiency
(proportional to
tariff)

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

Conclusions
 Strategies for Demand Side Management are helpful
to manage consumer’s energy need without any
additional supply.
 Capacity addition is not an easy task.
 There are several reason to go for DSM such as
unreserved demand, rising power prices,
environmental impact, etc.
 DSM plays an important role in the tariff
management.

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SKIT, Department of ME Course: Energy Management (8AG6-60.1)

References
 Handbook for Implementation of Provisions of Energy Conservation Act,
2001, Version 1, 2019,
https://beeindia.gov.in/sites/default/files/Enforcement%20Manual.pdf
 Energy Conservation Guidelines, BEE, Govt. of India, 2019
https://beeindia.gov.in/sites/default/files/EC%20Guidelines-Final.pdf
 The Energy Conservation Building Code, 2017,
https://beeindia.gov.in/sites/default/files/ECBC%20book%20final%20one
%20%202017.pdf
 Energy Management and Audit, 2017
https://beeindia.gov.in/sites/default/files/1Ch3.pdf
 General Aspects of Energy Management and Audit 2017
 P. Venkataseshaiah and K.V. Sharma, Energy Management, Wiley
 WR Murphy and C McKay, Energy Management, Elsevier

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