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Electricity Load Management Electricity Load Management is of two types: demand side management (DSM) and supply side management (SSM). While Demand Side Management refers to the Scientific control of usage and demand of Electricity, for achieving better load factor and economy, by the Supplier, Supply Side Management (SSM) refers to activities conducted on the utility’s side of the customers’ meter, in other words, how energy is provided to an end user/organization. Installation of one’s own renewable energy facility (small wind, small solar, biomass etc) can supply one’s facilities with the energy generation independently Electrical Energy demand management implies actions that influence demand for energy. The actions of market players and government (regulation and taxation), influences this demand for electricity. Usually, the goal of demand side management is to encourage the consumer to use less energy during peak hours, or to move the time of energy use to off-peak times such as nighttime and weekends. Peak demand management does not necessarily decrease total energy consumption, but could reduce the need for investments in networks and/or power plants for meeting peak demands. An example is the use of energy storage units to store energy during off-peak hours and discharge them during peak hours. Electricity use can vary dramatically on short and medium time frames, and the pricing system may not reflect the instantaneous cost as additional higher-cost ("peaking") sources are brought on-line. In addition, the capacity or willingness of electricity consumers to adjust to prices by altering demand (elasticity of demand) may be low, particularly over short time frames. In many markets, consumers (particularly retail customers) do not face real-time pricing at all, but pay rates based on average annual costs or other constructed prices. Suppliers' costs do not include all damages and risks of their activities. External costs are therefore incurred by others directly or by damage to the environment. These are known as externalities that can be internalized by adding external costs to the direct costs of the supplier as a tax or by introducing some form of rebate. DSM is often applied by TOD (Time of Day) Metering and differential pricing. Subsidies to the energy supply industry are still common in some countries. Demand Side Management It is achieved through the following methods: Energy Efficiency: Using less power to perform the same tasks. E.g. using less energy consuming bulbs for lighting, using electric programmed timers to run fridges. Examples 1. Investing in efficient light systems

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  • Electricity Load Management

    Electricity Load Management is of two types: demand side management (DSM) and supply side

    management (SSM). While Demand Side Management refers to the Scientific control of usage and

    demand of Electricity, for achieving better load factor and economy, by the Supplier, Supply Side

    Management (SSM) refers to activities conducted on the utilitys side of the customers meter, in other

    words, how energy is provided to an end user/organization.

    Installation of ones own renewable energy facility (small wind, small solar, biomass etc) can supply

    ones facilities with the energy generation independently

    Electrical Energy demand management implies actions that influence demand for energy. The actions of

    market players and government (regulation and taxation), influences this demand for electricity.

    Usually, the goal of demand side management is to encourage the consumer to use less energy during

    peak hours, or to move the time of energy use to off-peak times such as nighttime and weekends.

    Peak demand management does not necessarily decrease total energy consumption, but could reduce

    the need for investments in networks and/or power plants for meeting peak demands. An example is

    the use of energy storage units to store energy during off-peak hours and discharge them during peak

    hours.

    Electricity use can vary dramatically on short and medium time frames, and the pricing system may not

    reflect the instantaneous cost as additional higher-cost ("peaking") sources are brought on-line. In

    addition, the capacity or willingness of electricity consumers to adjust to prices by altering demand

    (elasticity of demand) may be low, particularly over short time frames. In many markets, consumers

    (particularly retail customers) do not face real-time pricing at all, but pay rates based on average annual

    costs or other constructed prices.

    Suppliers' costs do not include all damages and risks of their activities. External costs are therefore

    incurred by others directly or by damage to the environment. These are known as externalities that can

    be internalized by adding external costs to the direct costs of the supplier as a tax or by introducing

    some form of rebate.

    DSM is often applied by TOD (Time of Day) Metering and differential pricing.

    Subsidies to the energy supply industry are still common in some countries.

    Demand Side Management

    It is achieved through the following methods:

    Energy Efficiency: Using less power to perform the same tasks. E.g. using less energy consuming bulbs

    for lighting, using electric programmed timers to run fridges. Examples

    1. Investing in efficient light systems

  • One of the simplest ways to make a significant change is to invest in efficient lighting systems. Compact

    fluorescent lamps (CFLs) and LED lighting options use less energy, generate less heat, and last more than

    10 times longer than the average incandescent bulb. Adding lighting motion sensors will increase the

    energy efficiency even further.

    2. Switching off light when not in use.

    Just because electronics arent being used, doesnt mean they arent consuming electricity. Turn off or

    unplug any appliances when they arent being used since they still consume electricity in standby mode.

    You can also install power bars so you can easily access the plugs for multiple electronics and turn them

    all off with the simple flick of a button.

    3. Use of Programmable Controllers

    Why heat a room or keep lights on when no one is there? Install a programmable system which controls

    lighting, ventilation and temperature to knock down building room energy inefficiencies.

    4. Computer intelligence

    A typical desktop computer uses from 65 watts to 250 watts. When computers are left on overnight,

    they continue to consume electricity. There are software management solutions which help decrease

    the amount of energy computers and peripherals use, which considerably decrease overall energy costs

    per year. Using this type of energy management tool on an organizations network has been

    demonstrated to save on average 200 kg of CO2 emissions per PC per year, and generate $36 per PC per

    year in energy savings.

    Demand Response: Any reactive or preventative method to reduce, flatten or shift peak demand. This

    includes all intentional modifications to consumption patterns of electricity of end-user customers that

    are intended to alter the timing, level of instantaneous demand, or the total electricity consumption.

    Demand Response refers to a wide range of actions which can be taken at the customer side of the

    electricity meter in response to particular conditions within the electricity system (such as peak period

    network congestion or high prices).

    Dynamic Demand: Advance or delay appliance operating cycles by a few seconds to increase the

    Diversity factor of the set of loads. The concept is that by monitoring the power factor of the power grid,

    as well as their own control parameters, individual, intermittent loads would switch on or off at optimal

    moments to balance the overall system load with generation, reducing critical power mismatches. As

    this switching would only advance or delay the appliance operating cycle by a few seconds, it would be

    unnoticeable to the end user.

    One of the main goals of demand side management is to be able to charge the consumer based on the

    true price of the utilities at that time. If consumers could be charged less for using electricity during off-

    peak hours, and more during peak hours, then supply and demand would theoretically encourage the

    consumer to use less electricity during peak hours, thus achieving the main goal of demand side

    management.

  • Disadvantages

    Some people argue that demand-side management has been ineffective because it has often resulted in

    higher utility costs for consumers and less profit for utilities.

    Another problem of DSM is privacy: The consumers have to provide some information about their usage

    of electricity to their electricity company.

    Supply Side Management (SSM)

    Supply Side Management (SSM) refers to activities conducted on the utilitys side of the customer

    meter, in other words, how energy is provided to an end user/organization.

    The utility company often internalizes external costs (externalities) incurred such as damage to the

    environment in the form of environmental protection tax which is charged to customers.

    Three main types of techniques are used:

    a) Direct load control: Program designed to interrupt customers load during peak time by direct control

    of power supply to individual appliances at customers premises.

    b) Time of use (TOU) tariff these are discriminatory but have been shown to have significant effect on

    load management.

    c) Dispatch load management: The supply company makes agreement with customers to reduce their

    load and receive discounts on bills as compensation (tax rebates).