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DSM, also known as Demand Side Response (DSR) or Energy Demand Management, is to alter or control customers’ demands for energy at specific times by awarding financial incentives or changing behavior through education. DSM helps in reducing system peak demand by encouraging customers to decrease energy consumption during peak hours.

The aim is to increase energy efficiency by balancing supply and demand. This leads to maintaining minimum demand levels, which not only reduces waste but also decreases GHG emissions and other such pollutants. It also prevents a shutdown of strategic base load plants and emergence of new power plants to keep up with the demand.

The Importance of DSM:

  • Cost Effectiveness: Introducing DSM or other energy efficiency efforts with the assistance of integrated resource planning, leads to decrease in total cost of meeting energy demand. Not only are there fewer requirements for new power plants or distribution networks, but there is a significant decrease in consumers’ expense.

  • Environmental Factors: DSM leads to decrease in energy consumption, which results in moderation of greenhouse gas emissions, alongside encouraging addition to the company’s public image.

  • Reliability: Reducing energy demand results in system reliability, hence preventing problems in the network.

Forms of DSM:

  • Peak Clipping: There is a decrease in peak demand by “clipping” high demand period and reducing utility load during peak hours. It is often accomplished by directing signals to customer appliances, therefore controlling consumer loads in the process.

  • Conservation: This method focuses on the decrease of energy consumption by consumers. For instance, educating them to use more energy efficient appliances. There is a decrease in both demand and total energy consumption.

  • Load Shifting: This occurs when shifting load from on peak to off peak periods. Though there is a considerable decline in peak demand, total energy consumption is not affected.

DSM Techniques:

  • Direct Load Control: With the help of a remotely controlled switch, it directs signals to customer’s appliances, turning them on or off. This regulates the power an appliance consumes. It is used by utility or energy provider to reduce customer’s energy demands during peak time.

  • Load Limiters: This reduces the flow of electricity so that only the necessary appliances can be operated. In the case of overconsumption, the limiter shuts off electricity entirely.

  • Frequency Regulation: Difference between power generation and demand on the grid results in the grid frequency to shift away from its nominal value. When demand exceeds generation, required energy is supplied by the kinetic energy of generators’ rotors. This causes the synchronous machine to slow down, decrease in grid frequency. In the case of generation exceeding load, there is an increase in grid frequency.

  • Time of Use Pricing: This is a rating scale that reflects the cost of energy during peak and off-peak hours of the day. Such a plan can be called Time of Use rate plan, under which the consumer pays according to the energy utilized and the time of consumption.

  • Demand Side Bidding: This helps in improvement of operational efficiency in energy supply chain, as it encourages participation of the consumers in energy trading.

  • Smart metering:  This involves installation of an intelligent meter in consumer’s residence, accompanied by regular reading, processing and providing feedback on consumption. This intelligent meter not only measures consumption but can remotely switch off the energy as well as control maximum consumption.

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