needs,drivers,challenges,role of smart meter,types of dsm measures etc

1. Demand Side Management
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PRESENTED BY :
STUTI CHAKRABORTY
IIIT,BHUBANESWAR

2. WHAT IS DEMAND SIDE MANAGEMENT?
• “Demand Side Management” is the modification of
consumer’s demand of electricity through various
methods such as financial incentives and consumer
education
• DSM refers to “Actions taken on the customer's side of the
meter to change the amount or timing of energy
consumption. Electricity DSM strategies have the goal of
maximizing end-use efficiency to avoid or postpone the
construction of new generating plants."
[USA Department of Energy]
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3. 3
• Cost reduction of meeting energy demand
• Environmental and social improvement-
-Reduced emissions
• Reliability and network issues—improve
reliability and defer expansion
• Improved markets—demand response
• Improved national energy security
Why Promote DSM?

4. What Drives DSM?
• Cost reduction and environment:
– Reduce utility costs / customer costs
– Rising fuel prices
– Opposition/financial limitation to building new
plants
– emission/environmental concerns
• Network and market
– Delay or avoid expansion
– Competition
– Demand shifting 4

5. Need for DSM
• Saving 1 unit of electricity at consumer end
avoids nearly 2.5 times of capacity addition
• 1 MW capacity addition of thermal power
requires Rs 6 crores for installation and another
Rs 3 crores for Transmission and Distribution
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6. Need for DSM …..(contd.)
• Increasing energy requirement
• Increasing threat of climate change and other
environmental considerations
• Energy security
• Lack of other supply options
• Huge scope for energy efficiency measures 6

7. Demand is minimum between
12 a.m. and 6 a.m.
Demand is huge between
5:30 p.m. and 9:30 p.m.
Peak Demand at 7.30 p.m.
Since – Full Lighting load, and
other Commercial and
Domestic loads
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Usual Load Curve of an Utility for a 24 Hour period

8. Observations
• The peak demand of 4,300 MW is there for only
5-6 hours in the evening
• The base demand is 3,000 MW, which is much
less than the peak demand of 4,300 MW
• To meet the extra demand utility has to arrange
additional installed capacity or purchase power
at high rate
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9. Observations …..(contd.)
• Thus utility will always try to encourage
consumers to:
-Use less energy during Peak hours (Peak
Clipping)
-Shift energy use to off peak hours (Valley
Filling)
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10. Therefore consumers too have a very
important role to play for achieving the
objectives of DSM
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DSM
Utility
Consum
er

11. HOW TO DO DSM?
• To charge higher prices during Peak Hours
• Improving the efficiency of various end uses by
using energy efficient appliances, better house
keeping and reducing energy leakages.
• This is important for agriculture where energy
efficiency is very low (30-50%)
• Promoting use of Energy Efficient Technologies
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12. ROLE OF SMART METER
• Smart meter allows continuous metering and
distance reading of the energy consumption
• In order to give consumers offers that reflect actual
consumption and to have flexible energy demand
• DSI(Demand Side Integration) can be provided by
smart metering
• In addition, load control switches, controllable
thermostats, lighting controls and adjustable
speed drives are required.
• Such equipment receives signals such as alarms or
price signals and controls loads accordingly
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13. • Load control switches
• A load control switch is an electronic apparatus
which consists of a communication module and a
relay
• It is wired into the control circuit of an air
conditioning system, a water heater or a piece of
thermal comfort equipment
• The communication module is used to receive
control signals from the DSI program operator
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14. • Controllable thermostats
This type of apparatus combines a communication
module with a controllable thermostat, and
replaces conventional thermostats such as those
on air conditioning systems or water heaters
• DSI program operator (or a HAN) can increase or
decrease the temperature set point through the
communication module
• Lighting control
Lighting control equipment is used to manage the
energy used by lighting in a more efficient way.
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15. • Adjustable speed drives
ASDs allow electric motors driving pumps,
ventilation units and compressors to function
over a continuous speed range
• The loads of the majority of motorised appliances
change over time and equipment is often
operated at less than full load
• Allows the motors to satisfy the required
functioning conditions and to economise power
and energy use when the system is not
functioning at its maximum load
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16. Types of DSM Measures
• Energy reduction programmes—reducing
demand through more efficient processes,
buildings or equipment
• Load management programmes—changing the
load pattern and encouraging less demand at peak
times and peak rates
• Load growth and conservation programmes
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17. Energy Reduction Programmes
• Improving performance of boilers, steam
systems, etc.
• Efficient lighting
– CFLs
– Using natural light
• Appliance labelling
• Building regulations
– Efficient and alternative energy use
• Efficient use of electric motors
• Preventative maintenance 17

18. Energy Reduction Programmes
• Energy management
– Energy purchasing
– Metering and billing
– Performance measurement
– Energy policy development
– Energy surveying and auditing
– Awareness-raising, training and education
– Capital investment management
• Hiring an energy planner
• Housekeeping
– No cost / low cost measures
– Measures requiring some level of investment
• Energy auditing
– Preliminary audit
– Detailed audit
– Financial analysis
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19. Load Management Measures
• Load levelling:
– Peak clipping
– Valley filling
– Load shifting
• Load control:
– Loads (e.g. heating, cooling, ventilation, and
lighting) switched on or off, often remotely, by the
utility
• Tariff incentives or penalties:
– Time-of-use & real time pricing
– Power factor penalties 19

20. Load Growth and Conservation
Programmes
• Growth diverting other energy sources (fuel) to
better (more efficient) electrical sources
• Growth strengthens the utilities capability to
load manage
• Conservation results in a reduction in sales as
well as a change in the pattern of use
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21. DSM Programme Challenges
• Developing countries
– Awareness
– Technical capabilities
• Production and safety constraints
• Financing constraints
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22. Benefits of Demand Side
Management
•
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Customer Benefits Utility Benefits Societal Benefits
Satisfy electricity
demands Lower cost of service
Reduce
environmental
degradation
Reduce / stabilize
costs or electricity bill
Improve operating
efficiency,
Flexibility
Conserve resources
Maintain/improve
lifestyle and
productivity
Improve customer
service
Protect global
environment

23. CONCLUSIONS
• DSM is important for enabling the more efficient use of
base load capacity
• It mitigates electrical system emergencies
• Significant economic, system reliability and
environmental benefits
• Cheap, fast way to solve electricity problems
• Market DSM programmes to show potential customers
their life cycle benefits and often simple techniques for
reducing demand
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24. THANK YOU
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