DSM: Does it work for J&K PDD?

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Demand Side Management (DSM) is used to describe the actions of a utility, beyond the customer’s meter, with the objective of altering the end-use of electricity –whether it be to increase demand, decrease it, shift it between high and low peak load periods or manage it when there are intermittent load demands- in the overall interests of reducing utility costs. In other words we can say it helps the consumers to use electricity in an efficient way with low utility costs.

DSM can be achieved by improving the efficiency of various end-users through better housekeeping, correction energy leakages, and system conversion losses, as well to minimise the corona effect in extra high voltage lines. DSM through adopting soft options like higher prices during peak hours, concessional rates during off peak loads, seasonal tariffs, etc. it also includes the options for renewable energy systems, combined heating and Power systems. Independent purchase of power to meet with consumers demand at lowest possible cost.

DSM is the modification of consumers demand for energy through various methods such as financial incentives and education. Usually, the goal of demand side management is to encourage the consumers to use less energy during peak hours, or to move the time of energy use to off-peak times. 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. In addition the capacity of willingness of electricity consumers to adjust to prices  by 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.

Various market failures rule out an idea result. One is that suppliers cost do not include all damages and risks of their activities. External costs are incurred by others directly or by damage to environment and are known as externalities. However, the best approach here is that to have a taxation, so to intervene on the demand side by some kind of rebate. Energy demand management activities had bring the demand and supply to a perceived optimum. Governments of many countries mandated the performance of various programmes for implementing DSM Technology after 1973 energy crises.

While changing the electricity marketby some developed countries, a large uncertainty in the load growth had been faced with higher investment requirements for capacity addition, declining fuel sources and its associated environment costs. Due to change in regulatory stands, tariffs have also got changed which had affected the ability of utilities of customer service base. The concept of DSM was developed in response to the potential problems of global warming and the need for sustainable development, and the recognition that improved energy efficiency, which represents the most cost-effective option to reduce the impacts of these problems.

Demand Side Management refers to cooperative activities between the utility and its customers and also with some third parties like energy service infrastructure companies and various trade allied agencies. To implement the option for increasing the utility of efficiency, DSM service is one of the vulnerable idea in Power industry. Because while implementing DSM Technology it satisfies the customer’s electricity demand, reduces or stabilizing the costs, improving the value of services, and maintain the lifestyle productivity.

While in the scenario of social benefits it reduces the environmental degradation, protects global environment and maximise the customer welfare. And same is its utility benefits which lower the cost of service, improving operating efficiency flexibility, reducing capital cost and saves the capital investment, improving customer service.

After analysing its benefits by power engineers and the data collected by power technocratsit has been find that the implementation of DSM Programme will be more beneficial for power industries. Here in Jammu and Kashmir this DSM Programme often hinges on the ability to deliver the programme to its power consumers, whether households are industrial units. However, there is a key challenge before PDD of J&K state to persuade DSM with implementation of technological resources, to achieve the DSM objectives.

As might be expected, implementation is integrally linked with quality programme design. A poor programme design may be difficult to implement its basic purpose. If J&K PDD will take some steps to implement DSM programme they must take some Key points for its successful implementation like:

  • Start with good programme design,
  • Respond with good performance design
  • Be flexible with the detail of programme delivery
  • Learn from other utilities in the region

PS: Demand side management is planning, implementation and evaluation of utility activities in power industry to design and encourage the consumers to modify their electricity consumption pattern, both with respect to the timing and level of demand in kilo watt (KW) and energy in kilo watt hours (KWH).

(Shah Khalid is a freelance Journalist having a Diploma in Mass Communication & Journalism, presently pursuing Electrical Engineering at IUST Awantipora)

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