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Demand Side Management

DSM (Demand Side Management) is an important opportunity for electricity utilities to reduce their GHG emissions, promote energy conservation and lower emissions.

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The DSM approach is aimed at the utility companies customers (you and me), encouraging lower more efficient energy consumption.

Instead of building new power plants to respond to increasing customer demand, electricity producers may try to encourage reduce their customers' demand for power. Typically utilities offer special programmes or incentives for example programmes with lower tariffs, and subsidised high efficiency appliances, attractive finance, and the like.
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A few years ago here in Hong Kong the electricity utility companies offered various programmes including subsidised fluorescent light ballast upgrading programme, in theory to help to lower electricity consumption and their associated emissions.

From the end users point of view the consumption was lowered, saving money. However, from a global perspective the DSM programmes did little to dampen overall demand, and electricity consumption actually increased!

Load Management

Consumer demand for power is not uniform, there is large discrepancy between day and night-time consumption however utility companies would prefer a constant load or usage to optimise the return on their investment. Having invested heavily in the necessary plant, equipment and staffing, having it all lay idle during night time hours is expensive.

To help manage the risk most utility companies offer a variety of financial incentives to help balance these load variations, these include tariff penalties, and lower rates for off-peak period consumption.

One application that takes advantage of these tariffs arrangements is thermal storage, or more commonly known as Ice Storage. Lower overnight tariffs allow a thermal energy to be created overnight (stored) for use during the next day.

Click here to read more about Ice storage applications.

demand side energy management solutions

DSM programmes offer various incentives for consumers to lower energy consumption and save money.

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