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efficiency, and to reduce the consumption of energy by shifting the patterns of
consumption of final consumers. Reviewing these two objectives it could be
argued that these three elements are: energy efficiency, energy conservation
and demand response (Gellings 2009).
In the following sections these three concepts will be explained, and thesymbiosis relation between them will be described as well (section 2.3) in order
to show how programmes focused on Demand Side Management can
effectively be addressed.
2.1. - Energy Efficiency
Several animals have been used by mankind in order to achieve his well-being.
However, horses highlight among all of them, due to the importance that they
have had in the agriculture, transport and entertainment, especially in the
eighteenth century. According to Langdon (cited in Fouquet 2011) technologicalimprovements, such as horseshoes and harness, increased the efficiency
(production) of these mammals by an 80% (Mokyr cited in Fouquet 2011).
Similarly, from the point of view of energy, there is a concept that could be
related to the improvements mentioned before. The Energy Efficiency concept
addresses the permanent use of alternative device in order to achieve the same
performance for a specific activity, but using lesser energy than the original
device (Boshell & Veloza 2008; Bender, Davis & Lewis 2003).
The benefits from energy efficiency programmes are related to electricity price
reduction and construction delaying of new power plants. It should be noted that
investment in energy efficiency programmes is usually a faster way to control
and reduce consumption of electricity in the framework of Demand Side
Management (Ibrahim, Zamzam & Ruddin 1993).
Electrical drives and lighting are the first items that should be addressed in
order to improve the electrical efficiency in processes or facilities. Electrical
motors are massively used in different activities in our society, for example in
pumps, fans, compressor, lifts, air-conditioned, etc. In addition, these devices
are usually the most expensive items to run office-buildings (Beggs 2002, chp.14). Therefore, due to their importance, it seems to be logical to address energy
waste related to electrical motors, for instance: the direct relation that exists
between motors running at low speed and their relation to poor energy
efficiency and low power factor. Usually, a standard motor has an efficiency that
varies between 55% and 95% at full capacity, where this variability depends of
the size and speed of the motor (Beggs 2002, chp. 14). Indeed, it might be
argued that the appropriate selection of the motor power for a specific process
is the first energy efficiency strategy related to electrical motors.
The use of variable speed drives (VSD) with the aim to control the motor speedis another powerful initiative directly linked with the energy efficiency concept.
Energy savings using this improvement are related to control the flow through
VSD instead of using dampers or valves that will cause friction or energy losses
due to the resistance imposed by pipe constraining. Furthermore, it is
interesting what is argued by Saidur et al. (2012) in regards of VSD which have
more reliability than other types of flow control. Certainly, integrating VSD intoelectrical motors not only will improve the energy efficiency of the process, but
also it will save money associated with maintenance expenses in regards of
mechanical stress reduction. It should be noted that the integration of variable
speed drive into heating, ventilation, and air condition (HVAC) will diminish the
consumption of energy mainly because of the control speed of the motor, hence
the temperature control in a room or process.
Lighting is another aspect that is associated with energy efficiency programmes.
The development of this technology has helped to encourage the use of more
efficiency lighting devices such as Light-Emitting Diode (LED) technologies. Inaddition, it is interesting the comparison that Beggs (2002, chp. 14) makes
about the quantity of heat consumed by a building which is higher than the
energy consumed by lighting, however the energy costs of lighting is higher
than the heating energy costs.
Despite the fact that some authors (Bender et al. 2003; Boshell & Veloza 2008)
suggest different activities in regards to improve the energy efficiency of
different types of process, most of these activities are directly or indirectly
related to the devices mentioned before. Nonetheless, the most thrust aspect, in
relation to the concept of energy efficiency, is the awareness of energyconsumption and savings that would be able to achieve through energy
efficiency initiatives.
There is plenty of evidence about the effectiveness and profitability of energy
In order to overcome some of the barriers stated in this section, Bender et al.
(2003) conclude from their work two statements that with respect of present
paper present more relevance than the others. Firstly consumers have to
understand the concept and the market of energy efficiency programmes.
Secondly, in terms of the programme implementation, the strategy used has tobe related to sector where is implemented. For example, it will be different the
strategy and the result of an energy efficiency program in an office because it
will be addressed lighting or air condition replacement. On the other hand, in the
industry such as mining the focus will be in electrical drives such as
replacement of electrical motor or the integration of VSD into the process.
2.2. - Energy Conservation
Energy conservation and energy efficiency are two concepts that it could be
suggested that are similar. Actually according to King and Delury (2005), the
concept of energy conservation during the eighties and nineties evolved to
energy efficiency. However those concepts are totally different. In a broad
sense, while the concept of energy efficiency seeks to perform a specific task
consuming less energy than the other alternative; energy conservation seeks to
keep the energy, implicating not to perform the specific task. Another important
difference with respect of energy efficiency is that an energy conservation
strategy could be implemented in a short period of time. Therefore, the energy
conservation concept implies use less of a resource that can be done for a short
period of time. This objective is achieved changing people behaviour in their
lifestyle (Boshell & Veloza 2008; Bender, Davis, & Lewis 2003). For exampleenergy conservation initiatives in the Demand Side Management framework
are:
Lowering air conditioned settings from 18° to 15° C in winter.
Using washing machines and dishwashers at full load.
Using electrical motors at full capacity.
In summer season, avoid the use of air conditioned. Instead try to use
light clothing.
According to the literature, there is a direct relation between energyconservation and demand response, specifically dynamic pricing, reliability and
feedback programs. This relation will be addressed in the following section.
2.3. - Demand Response
Demand response is the third element of Demand Side Management, which
evolved in the United States from the concept of load management (King and
Delury 2005). Demand response seeks temporarily to reduce the customer
demand (kW) as an answer to the electricity market conditions, for instance:
transmission or distribution congestion, elevated power prices or systememergencies (Baskette & Brief 2010).
Demand respond could be easily confused with energy conservation, but the
thrust difference is related to the timing and the extension of the reduction.
While energy conservation is permanent in time, demand response implies
shifting the demanded load to a new time period. Usually, this shift is motivated
by electricity prices at different hours of the day. Hence, the consumption or useof washing machines, dishwashers or other appliance is mostly changed at
night.
It should be noted that the demand response implementation could not
necessarily reduce the amount of energy consumed. For example: there are
appliances, such as refrigerator, that are permanently used all through the day.
In those cases storage systems are utilized in order to save energy when the
price of electricity informed by the market is economically convenient (Arteconi,
Hewitt & Polanara 2012). However, the shifted load could consume more
energy than the original state of consumption. The reason is linked to theefficiency of the storage system utilized in order to store energy. In the original
case, electricity is only consumed by one appliance; but in the new case, where
the storage system is used, electricity is consumed by two devices: the
appliance and the storage system. For that reason demand response is not
considered as energy conservation strategy because the aim of it is to shift the
According to King and Delury (2005), demand response in the United States
has been massively influenced by peak capacity and system reliability.
Nonetheless, Bender et al. (2003) conclude three strategies in order to successwith demand response implementation: to achieve the appropriate price to
encourage consumers, consumers must respond quickly in order to control
dynamically demand and finally they must adopt appropriate technologies in
order to help to control demand.
Strbac (2008) reviews some initiatives called by him demand side techniques.
However, according to the meaning addresses in the present paper, those
techniques are closed to the significance of demand respond. Those techniques
are focused to shift or flatten the demand pattern. Despite the fact that those
have different names, most of them have the idea to motivate consumers
through energy price in order to achieve the new pattern. Some of the
techniques presented in that work are: direct load control, industrial peak
control, dynamic pricing and reliability program. In addition, Strbac mentioned
that frequency measurement is other technique that could be use to shift the
load curve. In a broad sense, the principle is correct. However, this could be
confusing due to control electric frequency is proper from the utilities and it has
indirect relation to the consumers (Beggs 2002).
The successful implementation of demand response programs have to becomplemented by the two other concepts of demand side management.
The electricity market is special due to the unique nature of this good. The
electricity cannot be stored, so for that is a unique market.
Gellings C, W, 1985 Electric utilities have learned that importance ofdeveloping a flexible and diverse management strategy that will help them
succeed in an increasingly competitive and uncertain market.
Newborough and Augood. In uk the peak demand and cost of supplying
electricity is greatest during winter. However in several other countries more
complex tariff exist (7), which assign costs to the maximum demand and/or time
of day/year. Unfortunately the required metering technology is expensive...
DSM CONCEPT
Baskette and Brief 2010 While research has shown that there is a clear link
between EE and DR, the two offering are rarely promoted to commercial,
institutional, and industrial customer as an integrated product or service.
Arteconi, Hewitt, Polanara 2012 the term demand-side management (DSM)
was coined in the early 1980s by EPRI (Electric Power research Institute) and it
is defined as : “the planning, implementation and monitoring of those utility
activities designed to influence customer use of electricity in ways that will
produce desire change in the utility‟s load shape, i.e. changes in the pattern and
magnitude of a utility‟s load”. All programs intended to influence customer‟s use
of energy are considered demand-side management and can be addressed to
reduce customer demand at peak times, reduce energy consumption
seasonally or yearly, change the timing of end-use consumption from high-cost
periods to low-cost periods and increase consumption during off-peak periods.
A thermal energy storage (TES) system is a device that can store thermal
energy by cooling, heating, melting, solidifying or vaporizing a material. It is
called sensible storage when the material temperature rises or falls and latent
heat storage when a phase change accurs.
Tes temporantly retains energy for a later use and it can be applied in different
applications. In a DSM program, a TES can be used for electric load
management in buildings by shifting electrical heating and cooling demands
from peak periods to off-periods. in fact, during of peak times, heating or
cooling can be generated by electricity, stored in the thermal energy device anthen used during peak-hours in order to flatten the customer‟s load profile. A
depend on their own needs, perceptions of benefits, attitudes and resources.
Therefore, DSM activities must be customers focussed.
DSM is a utility financed programme for total energy savings approach. DSM is
a set of tools that the power utility can be used to influence the timing and the
amount of electricity use in order to operate the power system in the least costmanner by altering the system load shape through peak clipping, valley filling,
load shifting, strategic load growth and flexible load shape.
DSM seeks to:
Minimise energy consumed for a given end-use.
Reduce maximum demand for the KWH consumed
Promote the use of electricity resulting in lower fossil fuel consumption
and therefore lower greenhouse gas emissions.
DSM comprises three major components; energy conservation, promoting
“ecowatts”, and load management techniques such time-of-day tariffs and load
control options as well as programmes specially designed to build load in both
peak and off peak periods.
DSM projects lighting, ceiling insulation, appliance design competition to
produce more efficient rise cookers and ceiling fans, producing brouchers and
guidebook on energy efficiency.
Bender, davis and lewis 2003 supply side solution that maintain largeamounts of capacity to meet small variations in demand levels are almost
inherently more expensive.
Energy efficiency and conservation fall under the heading of demand side
management (DSM).
Dsm programs are designed to achieve to objectives: reduce overall energy
consumption by promoting high efficiency equipment building design, and
achieve load reductions by changing the patterns of energy use, primarily at
times of peak demand.
California continues (2002) to be nation‟s more efficient state in terms of per
capita electricity.
The summer of 2000 was marked by increases in the wholesale price of power
and isolated supply short falls. By the winter constrained electricity supplies
forced rolling blackouts throughout the state. These circumstances led to
renewed interest in demand side programs as a resource that could help
alleviate electric system adequacy problems.
The primary end-use targets for the programs are: 1) lighting and appliances 2)heating, ventilation and air conditioning systems 3) motors.
The action plan describes 6 specific actions to decrease per capita electricity
use through efficiency and conservation:
Improve new and remodelled building efficiency by 5%
Improve air conditioning efficiency by 10% above federally mandated
standards.
Make energy new state building a model of energy efficiency.
Create customer incentives for aggressive energy demand reduction
Provide utilities with demand response and energy efficiency investment
rewards comparable with the return on investment in new power and
transmission projects.
Increase local government conservation and energy efficiency programs.
Strbac 2008 (UK) 1) key features of the present power system and the
opportunities for demand side management (DSM).
Installed generation capacity must be able to meet maximum (peak) demand.
Historically, a capacity of around 20% was considered to be sufficient to provide
adequate generation security. The average utilisation of the generation capacity
is below 55%. This relatively low average plant utilisation opens up significantly
scope for DSM as shifting load from peak to off-peak periods would reduce the
need for generation capacity and increase the utilisation of generating plant and
hence increase the efficiency of generation investment.
Shifting load from peak to off-peak periods generation fuel costs could be
reduced and the utilisation of investment improved.
In UK minimum demand occurs in summer‟s nights and is about 30% of the
winter peak.
Regular use of load control requires the ability of controlled deviances
(appliances) to reschedule operation or the ability to continue operating during
the interruptions by drawing on some form of storage. This storage can take the
form of thermal, chemical or mechanical energy or intermediate products. DSMtherefore redistributes the load but does not necessarily reduce the total energy
consumed by the device.
Benefits of DSM:
1) Reducing the generation margin of DSM. The total capacity of installed
generation in the system must be larger than the system maximum demand to
ensure the security in the face of uncertainty. In UK, deficits larger than 5000
MW will be very rare. Household would be willing to forgo consumption
relatively infrequently. The amount of load that it is needed is not massive incomparison to the size of the system. The value of DSM in this circumstance,
determined by the cost of alternative provision of capacity which in this is
generation would be XXX for a modern gas fired type plant. However, the value
of DSM could increase considerably above the cost of generation due to
difficulties and delays in the planning process associated with building new
power stations.2) Improving transmission grid investment and operation efficiency through
DSM. Power system security is traditionally achieved through preventive
measures the system is operated 24 h a day, 365 day a year, less efficiently
in order to be able to cope with outages that occur infrequently. The operation is
achieved through the huge expense of increased operating costs and low
utilisation of generation and network capacity. An alternative approach would be
to operate the system at lower operating costs and with reduced network and
generation capacity. This could be achieved by curtailing some loads at
appropriate locations. Clearly, this would allow generation to operate at lowercost (as congestion is reduced). Some consumer would find it financially
attractive to curtail or postpone their load to help correct an emergency
situation.
3) improving distribution network investment efficiency through DSM. DSM
could be use to manage network constraints at the distribution level. DSM could
bring several benefits:
Deferring new network investment
Increasing the amount of distributed generation that can be connected tothe existing distribution network infrastructure.
Relieving voltage-constrained power transfer power problem.
Relieving congestion in distribution substations
Simplifying outage management and enhancing the quality and security
of supply to critical-load customers.
Providing corresponding carbon reduction.
Increased loading of existing distribution substations in urban areas, driven by a
significant increase in air-conditioning load.
There is an opportunity for the application of ice-cooling facilities aimed at
increasing the short-term substation transformer rating by using the electricity to
produce ice during the night that can be used to cool the transformer during the
daily peak conditions.
Dsm in managing demand-supply balance in systems with intermittent
renewables: uk, wind power, both on-and offshore, is presently the principal
commercially available and scalable renewable energy technology.
Thermal units, however, operate less efficiently when part-loaded, with anefficiency loss of 10-20%. Since some of the generators will run part-loaded to
provide reserve, some other units will need to be brought onto the system to
supply energy that was originally allocated to the plant that is now running at
reduced output. This usually means that plant with higher marginal costs will
need to run. The significant amount of wind power in the system will cause an
increase in fuel costs associated with balancing the system in real time. Thesecost are effectively fuel cost associated with holding and exercising the reserve
necessary to manage fluctuations in demand and generation.
The additional value created by DSM is a result of reduced fuel consumption
associated with balancing.
x) the role of distributed power system: CHP+ renewable generation would be
driven by the prospect of significantly increasing the efficiency of the overall
energy supply system. This would be primarily achieved by making use of
rejected heat from medium and/or small thermal based electricity generation.
Chp this dual purpose based is very difficult to realise with units of very large
size. Generating electricity from large plant is accompanied by the production of
a very significant amount of waste heat that is difficult to make use locally, and
transporting it over long distance is inefficient. Balancing electricity demand
and supply is a distributed supply system dominated by different forms of
renewable generation, including various forms of CHP, will be challenging.
Gellings C, W, 1985 Demand side management (DSM) is the planning and the
implementation of those electric utility activities designed to influence customer
uses of electricity in ways that will produce desired changes in the utility‟s load
shape.
Boshell and Veloza 2008 The objective of Demand side management are
two: reduce overall energy consumption by promoting high-efficiency equipment
and building design and achieve load reductions by changing the patterns of
energy use by end consumers primarily at times of peak demand (California
energy commission, “Energy Efficiency and Conservation: Trends and Policy
Issues”, California, USA, Tech. Repor., May 2003http://www.energy.ca.gov/reports/2003-05-29_100-03-008F.PDF).
According to Boshell and Veloza (2008) states that the experience
establishes that the program of DSM is more effective when the three concepts
are involved. Therefore the programs are complement in order to support
between. For example: when a DR initiates is established, and it focused only in
to secure the stability of the system, which promote load shifting to periods of
time when electricity tariff are lower. However, it could be increased the
consumption of energy (average) due to the fact lack of regulation.
Newborough and Augood. The difficulty of storing electricity efficiently and
cheaply, is addressed by the DSM which smooth the demand profiles of
individual dwelling.
Gellings C, W, 1985 demand side management: concept of actively influencing
the demand for electricity. DSM is the planning, implementation, and monitoringof those activities designed to influence customer use of electricity in ways that
will produce desired changes in the utility‟s load shape, i.e., changes in the time
pattern and magnitude of a utility‟s load. Utility programs falling under the
umbrella of DSM include: load management, new uses, strategic conservation,
electrification, customer generation, and adjustments in market share.
Gellings C, W, 1985 DSM includes only those activities that involve a
deliberate intervention by the utility in the marketplace so as to alter the
consumer‟s demand. Under this definition, customer purchases of energy
efficient appliances as a reaction to the perceived need for conservation would
not be classified as DSM. Six broad categories of load-shape objectives can be
distinguished: peak clipping, valley filling, load shifting, strategic conservation,
strategic conservation, strategic load growth, and flexible load shape.
Peak clipping: is the reduction of the system peak load through direct
load control. Another example of peak clipping is the use of
interruptible/curtailable rates for industrial and commercial customers.
Valley filling. As the name same this technique consists in fill the gap
related to lack of load. Usually is accompanied by adding new thermalenergy storage in place of loads served by fossil fuels.
Load shifting, is the classical form of load management. This involves
shifting the load in on peak periods to off peak periods. Popular
applications include use of storage water heaters, storage space heating,
coolness storage, and customer load shifts. The load shifts from storage
devices involves displacing what would have been conventional
appliances served by electricity.
Strategic conservation. Is the load-shape change that results from utility-
stimulated programs directed at end-use consumption
Energy Eff ic ient
Beggs C 2002 chp 14 Pump, fans, compressors, escalators and lifts are all
powered by motors of one type or another. Furthermore, electric motors are
often the most costly items of plant to run office buildings.
The lower speed, the lower efficiency and the lower the power factor.
Depending of size and speed, a typical standard motor may have a full loadefficiency between 55% and 95%.
If the load fluctuates and rarely achieves 75% full load, then both the efficiency
and the power factor of the motor will be adversely affected. Therefore, if
motors are oversized, the need for power factor correction becomes greater.
The constriction itself increases the system resistance and results in increased
energy loss. This situation is highly undesirable and is one of the main reasonswhy the energy consumption associated with fans and pumps is so high in so
many buildings. An alternative approach to the use of valves and dampers is to
control the flow rate by reducing the speed of the fan or pump motor.
VSD Saidur, R, Mekhilef, S, Ali, MB, Safari, A, Mohammed HA 2012 VSDs
are realiable and cost effective means to control the speed of electrical motors.
Installing VSDs on electrical motor applications improves the efficiency of the
systems and saves a huge amount of energy. They require little maintenance,
provide the most energy efficicient capacity control, have the lowest starting
current of any starter type, and reduce thermal and mechanical stresses on
motors and belts. Applying VSDs to the HVAC systems and compressed air
provide excellent opportunities to reduce the energy consumptions. VSDs are
an option to match the required loads thus savings energy and improve the
economical features of motors.
Lighting energy consumption. Although in many buildings the energy consumed
by the heating system is often greater than that consumed by lighting, the
energy costs associated with lighting are often considerably greater than those
associated with the heating.
Baskette and Brief 2010 Energy efficiency and demand response fall under
the same umbrella. Energy Efficiency is the sustained reduction in energy
consumption (kWh) achieved either by replacing older products or equipment
with more efficient ones, or making operational changes to improve specific
system or equipment scheduling efficiency.
Generally, EE can help offset or defer the need of new baseload generation,
while DR can help to avoid the need for new peaking power plants or
transmission and distribution infrastructure. In many cases, the funding sourcesfor EE and DM are separated. As a result, EE and DM departments with distinct
goals and budgets, thus creating a barrier to integrated efforts between the two
groups.
Ibrahim, Zamzam & Ruddin 1993 the main thrust of Malaysian energy policy is
to supply adequate energy efficiency and on a least-cost basis to energy users.
Although energy efficiency programs began 1980, the Malaysian public is still
unaware of its importance. What is required is an effective public campaign and
implementation programmes to educate the public on what and, most
It was recognized that power utilities, together with development financial
institutions, were the most appropriate organizations to promote energy
efficiency in Malaysia.
Experiences in many countries clearly show that investment in improving the
efficiency of electricity services is, at the margin, the most cost-effective way ofexpanding electricity service in order to advance social and economic
development as well as easing pressures on global environment.
Benefits of promoting energy efficiency: efficiency will allow the utility to operate
at the lowest possible cost of production (tariffs stable and new power plants
(construction) will be delayed); through energy efficiency the power utility can
help reduce consumers bills; the risks of under building or over building new
plants will be reduced. Efficiency investments can be made in smaller amounts
and more quickly adjusted to meet changes in demand.
energy efficiency and conservation programs can play major roles in increasing
the reliability of the current electricity system and reducing the costs of meeting
peak demand during periods of high temperatures and/or high prices.
Example of energy efficiency: 1) replacing incandescent light bulls with compact
fluorescent bulls, which deliver equivalent light using 70% less electricity.
Installing new variable speed chillers that deliver cooling to building using 40%
less energy than typical chillers. 3) identifying and repairing leaks in ductwork,
which can improve heating and cooling efficiencies by as much as 25%.
Energy efficiency is a term that typically refers to the permanent installation of
energy efficiency technologies or the elimination of losses in existing system.
The aim of energy efficiency is to maintain a comparable level of service, but
reduce energy usage.
Understanding how the resources are actually used in energy consuming
activities know as end uses is crucial to any discussion on energy efficiency.
(P.10) California‟s efficiency initiatives have made substantial contribution to
slowing the growth of electricity and natural gas use over the past 26 years. Asshown in FIG 8, the cumulative effects of all California‟s efficiency programmes
and standards are more than 10000 MW and 35000 GW in savings through
2001. This saving is equivalent to the output of thirty-three 300 MW power plant.
Since energy efficiency building and appliance regulation went into effect in
1978, the energy commission estimates that Californians have reduced their
utility bills by at least $20 billion.
Energy efficiency has two major risk characteristics that are perceived to
compromise its contributions to electric system reliability: 1) the impacts of
efficiency are neither readily predictable nor easily quantifiable. 2) energy – savings measures cannot be called upon as resources in real time.
Some promising approaches that would permit programs synergies between
energy efficiency, demand response, and distributed generation include: 1)
increasing the focus in peak load reduction in energy efficiency programs 2)
coordinated marketing, information, education and implementation
3)introduction of new technology opportunities 4) integration of efficiency withdynamic pricing and metering. The first two approaches contributed to the
successful reduction of both energy use and peak load in 2001.
Energy efficiency programs will need to:
Help consumers understand new rates structures and how energy
efficiency and prices responsiveness strategies could benefit them.
Identify the most viable demand strategies for different market
segments.
Support testing and promoting of technologies to allow end users toeasily respond to high energy prices.
Help consumers protect themself from surprise bill risks.
Boshell and Veloza 2008. Term that refers to the permanent installation of
energy efficient technologies or the elimination of energy losses in existing
systems. The aim of energy efficiency is to maintain a comparable level of
service, but reduce energy usage. Examples of energy efficiency are:
Replacing incandescent light bulbs with compact fluorescent bulbs.
The use of automatic thermostats.
Domotics (home automation devices)
Installing new variable speed chillers that deliver cooling to building
using less energy than typical chillers.
Identifying and repairing leaks in compressed air networks.
Energy Cons ervat ion
Patrick et al 2007 Chapter 11 the main thrust of energy management is to
conserve energy which in turn saves money. To have effective energy
management, a person must have energy awareness and the desire to save
both energy and money. Remember that properly maintained and managed
building, on the average, will consume 20% to 30% less energy than a poorly
maintained and managed one.
Energy conservation is not energy management. Energy conservation is doing
what is easy and economical in the short term. Energy management, in
contrast, is the long-term commitment of one or more individuals.
Demand response as price-modulating tool in competitive market.
Although the primary intended effect of demand response programs is to reduce
electricity use during time of peak load, the vast majority of demand response
programs also yields a small effect of conservation:
Broad definition of demand response: dynamic pricing programs, reliability
programs, and information feedback programs:
Dynamic pricing program 4% conservation
Reliability program 0,2 % conservation
Feedback program 11% conservation
The data analysed shows a very strong correlation among three factors:
dynamic pricing, automated controls, and feedback programs or devices. Any
combination of these three elements produces a greater conservation effect
than a single factor alone. With the combination of these 3 elements producing
the greatest effect.
Conclusion: demand response programs usually result in a small reduction in
total electricity consumption in addition to a much larger reduction in electricity
use during peak hours. Efficiency and conservation and demand response are
two similar but different tool in demand side management tool box. Each has its
own attributes and each complement the other. Efficient and conservation can
result in load reduction on peak, but likely cannot be dynamically controlled.
Demand response offers “dynamic control and dispatch”, while likely not
resulting in increased usage, may not always result in a large conservation
effect.
Strbac (2008) load reduction periods will be followed by load recovery. In some
cases the amount of load recovered may exceed the amount of load curtailed
because of losses in the storage or energy conversion process. It should benoted that DSM and storage are inherently linked and should not be considered
in isolation.
Evolution of feedback technology already in progress in the form of phasor
measurement units, which take time – stamped measurement of the key
electrical quantities in magnitude and form.
Brief review of DSM technique: a) night time heating with load switching. Given
that base-load operates with load marginal costs, night-time electricity heating
has been success fully applied in a number of countries night time storage
B) Direct load control: domestic direct-load control programmes apply to
appliances that can be turned off or cycled for relatively short periods of time.
The most common applications are domestic air-conditioners, water heaters
and swimming pool pumps. Customers who take part in direct load control
receive compensation through reduced electricity bills. Load limiters: limit thepower that can be taken by individual consumers. The level at which the limit is
set, can be adjusted.
c) commercial/industrial programmes. Peak load management and industrial
classes of customers . Particularly popular are load-interruptible programmes
for the provision of reserve services and for enhancing system reliability.
d) frequency regulation trigger load reduction ....
e) time of use pricing
f) demand bidding. Are available when that customer is willing to reduce or
forgo their consumption of electricity at a certain predetermined price. Smart
metring and applicances.
Boshell and Veloza 2008. It is related to electricity market and price signals,
for instance in the form of “load management” or “load shifting”. Here a
customer reduces load in response to a signal from a service provider. These
are different from conservation in that the activity is not necessarily reduced, but
rather shifted to another time period. Dynamic pricing is anew metered load
management approach that uses price signals to induce customers to reduceenergy use at specific times of the day, typically when energy is the most
expensive to procure.
Bender, Cheri 2003 (California) Dsm also can take the form of “load
management” or “load shifting”. Here a customer reduces load in response to
an emergency signal from a service provider or grid operator. These are
different form conservation in that the activity is not necessarily reduced, but
rather shifted to another time periods. Dynamic pricing when the electricity is
more expensive to procure.
The most promising technology innovations for both energy efficiency and
demand response involve pricing and metering. Dynamic pricing strategies
should increase interest in energy efficiency to reduce end-use peak loads that
are both coincident with high cost periods and harder to shift, like space cooling
and refrigeration. For end-use loads that are easier to shift, like laundry,
dishwashers, and pool pumps, however, energy efficiency may be less
economically valuable to the consumer when usage could be shifted to cheaper
off-peak prices than in the current rate structure.
Successful load shifting via dynamic pricing depends upon: 1) getting the priceright in the first place 2) consumers‟ willingness to adopt dynamic rates 3) their
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