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Demand Side Management (DSM)

About Demand Side Management (DSM)

1.Demand Side Management is a utility program aiming to fine-tune consumer’s energy consumption pattern according to the utility’s energy demand and distribution capacity without compromising consumers comfort.

2.Demand Side Management relies on a combination of using high efficiency equipment and efficient use of electricity through good operating  practice.

3.Demand-Side Management is the implementation of policies and measures which serve to control, influence and generally reduce electricity demand.



1.Reliability and Stability:
       ♦ DSM provides enhanced reliability to the energy system by reducing overall demand through energy efficiency and byreducing peak demand through dispatchable  programs.                                          
       ♦ DSM reduces transmission and distribution costs relative to a supply side resource.
       ♦ DSM increases diversity of energy sources.

2.Low Cost and Affordability:
       ♦ The DSM programs are technology specific and vary relative to other supply side resources.
       ♦ Dispatchable DSM programs can be called when their cost is lower than alternative market purchases.
       ♦ DSM programs can also help low-income customers to reduce their energy costs


Types of DSM Programs:

Following three factors reduce energy consumption (kWh) and peak demand (kW), however, emphasis differs.

 1.Energy Efficiency-emphasis is on reducing overall energy consumption and also peak demand over several years.
 2.Peak Load Management – emphasis is on reducing peak demand consistently over a season.
 3.Demand Response – emphasis is on reducing peak demand for short periods of time for a few days during the year.






Last Updated: 08-05-2020 04:29 PM Updated By: Admin

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