MODULE 5

ENERGY AUDIT APPLIED TO BUILDINGS

DEMAND SIDE MANAGEMENT

ENERGY SAVING MEASURES IN BUILDINGS:

 While commercial buildings have one of the highest energy needs in the market, they also account
for significant wastage.
 On average, commercial buildings waste 30% of their energy.
 That translates into colossal costs, lowered efficiency, and reduced ROI in the long run.
 Fortunately, there are a couple of things you can do to bring down energy costs and make your
building energy-efficient.
 Engage Occupants in your Building:
 Saving energy is not a one-man initiative.
 You need to engage the occupants of your building and encourage them to embrace energy
efficient solutions.
 The reason for this is that how occupants use energy impacts on the energy efficiency ratings of
your building.
 As the owner or building manager, take the initiative to share energy goals and give incentives to
encourage occupants to rethink their energy use.
 By engaging occupants and educating them on energy-efficient strategies, you can save up to 10%
or more on energy use and transform your building into an energy-efficient structure.
 Energy-Efficient Bulbs & Lighting Fixtures
 While lighting fixtures are key requirements of any building, they also contribute tremendously to
wastage.
 You can find yourself paying more for electricity than you had actually intended.
 Whether you are the owner or a building manager, consider replacing incandescent light bulbs
with energy-saving LED bulbs and retrofit the building with energy-efficient fixtures.
 It’s highly recommended to use Energy Star approved fluorescent bulbs as they are more durable
and cost 75% less to maintain.
 Install Light Sensors
 It’s not enough to use energy-efficient bulbs; you need to have a lighting control mechanism in
place.
 It’s highly recommend that you encourage occupants to install sensors that turn lights on and off
automatically.
 The reason for this is that light sensors are relatively cheap and highly reliable in controlling
lighting and minimizing wastage.
  When you install and use switch plate sensors in strategic locations, you can gain quick savings
and improve the energy-efficient ratings on your building.
 Sun-Proof your Building
 Does your building face direct sunlight? Here’s what you should know.
 Buildings that face direct sunshine heat up quickly and require more energy to keep cool.
 To keep temperatures low, block direct sunshine from shining through windows.
 Consider insulating climate-controlled areas of the building and improving insulation with solar
films, solar screens, and awnings.
 Don’t forget to check for leaks on doors and windows, as they impact on internal conditions.
 Regulate Heating with Thermostats
 Sometimes, occupants tend to use more energy on heating than is required.
 Such wasteful habits, whether it’s heating water or heating rooms, has the potential to increase
energy costs in a building substantially.
 You can keep costs in check and increase energy efficiency by encouraging responsible heating.
 The easiest way is to install and use thermostats.
 When used constantly, thermostats can slash heating costs and improve your savings.
 Rethink your HVAC Systems
 Like it or not, commercial HVAC systems account for a considerable percentage of energy
consumption in a building; you need to rethink how you use the HVAC system.
 To get the most out of your HVAC, fine-tune it to be more efficient.
 Delay using the HVAC unit during the day and instead, use fans to aerate and cool rooms.
 Minimize air conditioning hours and use programmable thermostats when heating.
 Inspect the HVAC system for leaks and replace air filters regularly. And if you’re HVAC is old,
it’s prudent to replace it with an Energy-Star Qualified model.
 Make Efficiency Upgrades
 As we have seen, commercial buildings use and waste more energy than other buildings.
 The costs can be tremendous and shrink the margin on your ROI.
 You can reduce wastage and save up to 35% on energy by making efficiency upgrades to your
building.
 Efficiency upgrades allow you enjoy clean energy at a much lower cost.
 Energy Star provides a 5-stage approach to upgrading buildings and maximizing energy savings.
 We also recommend that you switch to Centria panels as they can help you attain greater thermal
efficiency and moisture control.
 They also up the aesthetic value of the building.
 To get the most, ensure that you perform an energy audit to discover opportunities and areas for
improvement.
 Energy-Star Qualified Products
 Conventional appliances and electric products make life easier, however, they have the potential
to raise the cost of electricity.
 When shopping for lighting fixtures or appliances, it’s advisable that you go for products with
manufacturers’ energy efficient ratings.
 Models with high EER ratings or Energy star labels use 15% less energy than conventional
products.
 That puts you in a good position to save energy and enhance the efficiency of your building.
 Besides that, EER qualified products make you eligible for energy rebates from your utility
company.
 Plug Leaks in your Building
 Do you suspect the presence of a leakage in your building? Get a home inspector to check for
leaks.
 The reason is that leaks of any kind make it difficult to control internal conditions.
 You may find yourself using more energy to heat rooms than you would in normal conditions.
 If you are certain your building has leaks, we recommend weather stripping & caulking.
 Both can help you control your ventilation, improve indoor air quality, and keep heating costs in
check.
 Bottom Line:
 Powering commercial buildings is a costly affair.
 If you’re not proactive, you can find yourself spending a lot more on energy than you intend.
 To keep costs low, you should embrace cost-effective strategies and implement solutions that can
help you reduce waste and increase efficiency.
 Simple things such as replacing incandescent bulbs with fluorescent bulbs, retrofitting your
building with energy-efficient fixtures, and rethinking how you use your HVAC can lower energy
costs and enhance the efficiency of your building.
 Plugging leaks, using solar screens, and making efficiency-upgrades will also help you slash
energy costs
 Consider Renewable Energy:
 You seriously need to think about how you power your building.
 The world is shifting from non-renewable to the cleaner and sustainable renewable energy.
 Commercial non-renewable energy is not only costly but also less eco-friendly.
 Embracing renewable energy can help you lower energy costs and make your building more
energy-efficient.
 Instead of using electric-powered hot water heaters, use solar heaters.
 Take advantage of state subsidies and incentives to transform your building into an energy-
sufficient and efficient model.
STRATEGIES TO SAVE ENERGY IN COMMERCIAL BUILDINGS
1. HVAC maintenance: an easy way to save energy in buildings
 Regular visits from an HVAC professional make your system more efficient and help prevent
costly repairs.
 Clogged filters, dirty ducts and coils, debris and dust laden vents and fatigued parts will make your
system work harder and longer to get to set temperatures.
 If you have a preventative maintenance contract, an HVAC technician will thoroughly inspect and
clean different parts of your system to ensure system efficiency.
2. Insulation saves energy
 Adding insulation is another easy way to save energy. It’s fairly inexpensive.
 According to the EPA, you can save 10-percent of your energy bill by installing proper insulation
and sealing your building.
 Don’t just look at the obvious places: windows and walls.
 It is important not to overlook pipes, HVAC ducts and electrical outlets.
3. Teach employees to turn off electronics
 Work places make up 50-percent of our country’s energy usage.
 So, it’s sensible to teach employees the importance of shutting off lights and equipment.
 Train employees how to save energy in buildings.
4. Utilize smart building technology
 The latest controls and programmable thermostats should be part of your strategy to reduce energy
consumption.
 Smart building controls eliminate the human forgetfulness factor of failing to turn off or down
lighting and HVAC settings.
5. Change or retrofit your HVAC system
 A retrofit can be a stop-gap before you have to replace your system entirely.
 Retrofits, which can include replacing the system’s compressor, adding condenser fan controls,
adding demand-controlled ventilation and adding air side economizers, can boost your comfort
and reduce your energy bill.
 The Department of Energy has estimated that a retrofit can equate to an energy savings of up to
35 percent.
6. Don’t throw money out the window
 Your space might have old windows that are not very energy efficient.
 Though new windows are a big investment, new windows can produce tremendous energy savings.
 Also, look at your windows when assessing how to save energy in buildings.
 Your old roof can also waste energy by leaking air conditioned and heated air.
 7. LED lights can result in simple savings
 Often businesses use up a lot of energy through lighting.
 According to the EPA, Energy Star-rated bulbs use 75-percent less energy than incandescent bulbs.
They also last up to 10 times longer.
8. Get energy efficient appliances
 Your old office refrigerator, water cooler and vending machines use a lot of power.
 Replacing older models with newer energy-efficient ones will help you reduce energy use in
buildings.
9. Get the right size HVAC system when figuring out how to reduce energy consumption in
buildings
 The first thing you want to do is ensure that the load calculation is accurate.
 A properly-sized system is designed for your building. An oversized system can result in increased
upfront, maintenance and energy costs.
10. Do an energy audit
 Most of these steps often begin by performing an energy audit on your facility to determine
potential areas of improvement.
 An energy audit can be a good idea for both your business and your home.
 The audit can be completed yourself or by hiring a consultant to audit your energy usage.

HOW TO SAVE ENERGY IN COMMERCIAL BUILDING

 The Building Owners and Managers Association (BOMA) International released its top ten ways for
building owners and managers to reduce energy consumption.
 These no or low cost strategies are part of the nationally recognized BOMA Energy Efficiency
Program (BEEP) that offers commercial real estate professionals’ strategies for reducing energy
consumption by as much as 30 percent.
 “The built environment accounts for 48 percent of greenhouse gas emissions in this country,”
 In addition to these ten areas, hot air ducts, ventilation, and cold air systems are vital components to
all commercial buildings. How they are insulated depends on many factors and needs. Here are some
examples:
 Insulation with a factory-applied vapor barrier may be required to prevent the penetration water
vapor and condensation from corroding the duct and fan system.
 The thickness of the insulation and application requirements must be considered to prevent hot
or cold air from leaving the system.
 Insulation used as an absorbent filler can reduce tonal and broad band noise coming from the
fans.
1. Check that equipment is functioning as designed.
 Regularly inspect all equipment and controls to ensure they are functioning as designed.
 Double-check Energy Management System (EMS) programming to make sure that operations are
optimized.
 One firm changed an EMS software programming error from “and” to “or” and saved $3,700
annually.
 “You must remember that the equipment is the first place that raw energy is turned into useful
work in the facility,” says Sam Schell, consulting engineer with SESCO, Inc.
 “A loose fan belt requires more energy to run the fan than a properly adjusted belt.”
2. Consider your cleaning options.
The following cleaning options can be used to save the most energy for a particular commercial
space:
 Team cleaning: Janitors go through the building—floor by floor—as a team, and the lighting is
turned on and off as they progress through the building.
 Occupancy sensors: Motion sensors can be installed to automatically turn lights on when janitors
are cleaning and turn them off when the floor is vacant.
 Coordinated effort: Janitors can coordinate with the security crew to walk through the building
and turn off equipment that was inadvertently left on by tenants.
 Day cleaning: Why not have the janitors clean during the day while the lights are already on?
3. Encourage tenants to turn off equipment.
 During off-hours, make sure to power down everything, including copiers, kitchen equipment, and
task lights.
 Use cleaning and security personnel to turn off miscellaneous items like coffee pots, kitchen
equipment, and individual office lights.
4. Use high-efficiency light-emitting diode (LED) exit signs.
 Replace inefficient exit signs with high-efficiency LED exit signs.
 LED exit signs operate 24-7 and have lower maintenance costs due to their extended life.
5. Institute an energy awareness program.
 Create promotional items, posters, and news releases—tell everyone about your commitment to
energy savings.
 Use your company newsletter, as well as company and building announcements, to keep tenants
informed about your energy-savings goals, and how they can both help reach them and benefit
from them.
6. Install monitor power-management software
 In U.S. companies alone, more than $1 billion a year is wasted on electricity for computer monitors
that are left on when they shouldn’t be.
  You can avoid those wastes by installing power-management software for computer monitors,
central processing units (CPUs), and hard drives.
7. Change incandescent lights to compact fluorescent lights (CFLs) and high intensity discharge
(HID) lights.
 CFLs use less energy, have a longer lamp life, and produce less heat, reducing heat load.
 Also, check the lighting in rest rooms, closets, server rooms, and common areas.
 Thanks to the 2005 Energy Bill, lighting retrofits and upgrades that meet energy-efficiency
requirements may be tax deductible, up to 60 cents per square foot (psf).
8. Harvest daylight.
 Locate work stations that require high illumination adjacent to windows.
9. Evaluate after-hours usage.
 Talk to tenants to find out if they are actually using their spaces during the lease-required operating
hours.
 Adjust building operating hours to reflect actual tenant usage.
10. Adjust ventilation.
 Reduce exhaust and outdoor-air ventilation rates within codes.
 Take a look at the fans and adjust ventilation in unoccupied and low-density areas to reduce the
ventilation to a practical, yet comfortable level.

WATER AUDIT
Step 1: The Water Use Inventory.
 It is important that facility executives develop an understanding of exactly how and where their
facility uses water.
 To do this, an inventory of all water use points in the facility with flow rates must be developed.
 Start with a walk through of the facility, identifying every point in which water is used.
 For items such as toilets and faucets, the inventory should include the item, its location and its flow
rate.
 If the facility has low-flow fixtures or if flow restrictors have been installed, identify them on the
inventory.
 Mechanical systems account for approximately 25 percent of the total water use in an average
building.
 Refrigeration units that use once-through cooling systems also can be very large users of water.
 The inventory should include the type of system installed, its location, its capacity, and the rate at
which it uses water for cooling.
 In some cases, the owner’s manual will identify the water flow rate. However, it may be necessary to
use a stopwatch and a bucket to determine the actual water flow rate.
 Irrigation systems also can be a significant water user.
  The inventory should include the number of systems, the number of sprinkler heads attached to each
system, the flow rate of the systems and types of controls installed.
 Note if each system is equipped with ground moisture sensors to prevent activation during or
immediately following a rainfall.
 In addition to identifying all water use points and flow rates, the inventory should identify if the water
being used is hot or cold, or if it undergoes special filtering or treatment.
 Reducing water use in applications that use hot or treated water will produce savings that go beyond
solely the cost of the water.
 When completing the inventory, pay attention to any unexplained water flow.
 As piping systems are modified over the years, it is easy to lose track of what piping serves what
equipment.
 Don’t be surprised to find water flowing from equipment that is no longer used or even installed.
Step 2: Metering.
 Unfortunately, most facilities only have a single, master water meter.
 Readings from master meters will provide an indication of how a facility compares to other facilities,
but it will not show where to look for areas where water use can be reduced, particularly if the facility
is large or complex.
 Narrowing use down to possible areas where use can be reduced requires sub metering.
 Where and how submeters are installed depends to a great extent on the design of the water system
serving the facility.
 Ideally, submeters would be installed on individual zones or floors of the facility.
 Equipment with large water use rates, such as cooling towers and process cooling equipment, would
each have separate submeters.
 Each meter should be read at least monthly. If there are suspicions that the readings for a particular
meter are high, or if the readings for a meter suddenly increase, it will be necessary to read that meter
more frequently; even on a daily or twice-daily basis.
 Meter readings taken while the facility is closed and processes are shut down is one way to narrow
the search for leaks and losses.
 All meter readings should be logged and reviewed on a regular basis for unexplained changes.
 Tracking water meter readings will provide a baseline of water use for the facility.
 Just as energy use for different types of facilities was tracked on a use-per-square-foot basis to allow
comparison between similar facilities, so can water use.
 However, other measures than square footage will likely be more meaningful.
 For example, in hotels, use can be tracked on a per-occupied-room basis. For restaurants, it could be
on a use per-meal-served basis. Office facilities may use a square-foot basis or per-building-occupant
basis.
  Again, the key to gaining useful information from submeters is to have the meters read on a regular
basis, and as frequently as possible.
 Frequent readings help to quickly identify and locate leaks.
Step 3: Review Maintenance Practices.
 If water conservation has not been a priority in the past, chances are no one individual or group has
the overall responsibility for conserving water.
 And as with many things in the world of facility management, if no one individual has responsibility
for an item, then it is not a priority for anyone.
 As a result, specific water use related problems may have been seen by a number of people but not
really noticed or acted upon.
 Preventive maintenance programs have long been recognized as effective tools for improving system
performance while reducing overall operating costs.
 With water use historically being an ignored or low priority item, chances are few preventive
maintenance steps have been put in place to specifically address water use.
 When maintenance issues occur within the facility, there is a system established whereby building
occupants can report the problem.
Step 4: The Water Efficiency Plan.
 Once information has been gathered on how water is being used in the facility, an action plan can be
established for reducing water use.
 The plan should identify who will take responsibility for implementation.
 It should make certain that individual has the authority and support needed to implement the plan.
 The plan should set specific water use reduction goals for the facility. Those goals must be
measurable, achievable, and realistic.
 The plan must also identify a mechanism for periodically reviewing the success of the program in
meeting those goals.
 The water audit should have identified a number of areas in which water savings can be achieved.
 The water efficiency plan should set the priorities for implementation based on costs, benefits and
available manpower.

THE BENEFITS OF WATER AUDIT

 Water audits provide decision making tools to utility managers, directors, and operators. i.e., knowing
where water is being used in your system allows you to make informed decisions about investing
resources such as time, labour and money.
 Water audits allow managers to efficiently reduce water losses in the system.
 It less the cost incurs for electricity, chemicals, and maintenance cause due to losses in the system.
 Reducing water used at the source may even result in delaying or avoiding capital investments such
as a new well, more treatment technology or additional water rights.
  Water audit also identify which water uses are earning revenue for the utility and which water uses
are not. Thus, System personnel can increase revenue by ensuring all appropriate uses are being
accurately measured and billed. This leads to more financial capacity in the water system, reduced
cost per customer and better management of the water Resource.
 Creating awareness among water users i.e., customers can see and understand that the utility is taking
proactive steps to manage wasted water.
 It is an effective educational and public relations tool for the water system.

INTRODUCTION TO DSM
 Electricity has a peculiar that it cannot be stored in large amounts.
 Power is drawn by the consumer to the extent of his requirement and capacity of service mains.
 Electric utilities have realized that consumer demands cannot be met satisfactorily by adding new
generating capacity alone.
 Due to increasing fuel prices and energy costs, utilities have started thinking of energy
management/Demand side management.
 In addition to classical approach of encouraging off peak energy utilization, penalization for excessive
use at peak time has been considered
 Demand side management means the approaches and actions which aim at augmenting the systems
capacity by decreasing the consumers demand.
 DSM can be of great help in reducing electricity shortages and increasing reliability of electric supply.
 Energy demand management also known as demand side management, deals with actions that
influence the quantity or patterns of use of energy consumed by end users such a actions targeting
reduction of peak demand during periods when energy supply systems are constrained.
 Demand side management programs consist of the planning, implementing and monitoring the
activities of electric utilities that are designed to encourage consumers to modify their level and
pattern of electricity usage.
 DSM refers only to energy and load shape modifying activities undertaken in response to utility
administered programs.
 It does not refer to energy and load shape changes arising from the normal operation of the market
place or from government mandated energy efficiency standards.

WHAT IS DEMAND SIDE MANAGEMENT?

 Demand side management is the process of managing the consumption of energy, generally to
optimize available and planned generation resources.
 In the context of Power Sector DSM can defined as “a set of measures to effectively manage the total
demand on the integrated grid within its designed capacity to ensure acceptable quality of power
supply to all consumers”. Management of voltage, frequency and stability.
  According to department of energy, DSM refers to actions taken on the customer side of the meter to
change the amount or timing of energy consumption.

WHY DEMAND SIDE MANAGEMENT IS REQUIRED?

 It is an economic necessity; reduces overall cost of installed capacity.
 It leads to efficient usage of overall power system
 Ensures quality and equity of supply
 Unlimited demand leads to instability of grid
 Essential during times of power/Energy shortage
 Reduces need for peaking stations
 Reduces 25-35% of global Carbon di oxide emissions to the atmosphere
 Thinning of ozone layer, greenhouse effect
 Global warming, sea level rise and acid rains
 Should be environmental friendly
 Increase in efficiency of production, transmission and end use.

SCOPE OF DEMAND SIDE MANAGEMENT

 DSM involves all activities which involve actions on the customers side of the energy meter.
 These activities may be undertaken by customers themselves or stimulated by the utility.
 The scope of DSM includes load management (Shifting loads from peak to off peak periods), Energy
conservation, increased electrification (replacement of non-electric devices be electric devices).

CONCEPT OF DSM
 Utility planning was plagued by the uncertainty of future loads.
 As electricity tariffs rose, the consumers felt greater attraction for energy conservation.
 Utilities realized that promoting DSM measures is less costly than increasing installed generating
capacity.
 Utilities sought methods to alleviate(lessen) customer dissatisfaction by providing service options
that offered that opportunity to exercise control over electricity bills.

BENEFITS OF DSM:
 Benefits of supply Industry
 Reduction in customers energy bills
 Reduction in the need for a new power plant, transmission and distribution network.
 Stimulating economic development.
 Creating long term jobs due to new innovations and technologies.
 Increasing the competitiveness of local enterprises.
 Reduction in air pollution
  Reduced dependency on foreign energy sources.
 Reduction in peak power prices for electricity
 Improved operating efficiency and flexibility.
 Improved load factor
 Increased efficiency of utilization of assets.
 Customer Benefits
 Satisfy electricity demands
 Reduce/stabilize costs
 Improve value of service
 Maintain/Improve lifestyle and productivity.
 Societal Benefits
 Reduce environmental degradation
 Conserve resources
 Protect global environment
 Maximize customer welfare

DSM PLANNING AND IMPLEMENTATION:

• DSM planning and implementation can be described in steps as shown in figure below
Step 1: Establish base case:
 The analyst determines a base case so that impact of DSM may be compared against it.
 The base case is determined for class of customers.
 Each segment is characterized using indicators such as total demand and Energy use, number of
Consumers, consumption per Consumer.
 The creation of base case and its calibration with utility's demand and Energy forecasts helps in
understanding the customer's usage pattern so that impacts DSM programs can be estimated.
 This step includes collection of data about end use efficiencies of various technologies.
(a) Domestic Consumer's Base Case:
 In this base case domestic end uses of Electricity are found.
 These end uses include illumination, water heating, refrigeration, fans, cooking, room
cooling, room heating etc.
 The end use Energy consumption is characterized and calibrated to forecast sales data.
 Domestic end use characteristics can be written as
Ebc,eu = (HHbc) (SATbc,eu) (AECbc,eu)
 Where, E = Energy consumption, kWh
 HH = number of households
 Sat = fraction of households owning each end use
 AEC = average Energy consumption in kWh per end use
 bc = building category
 Eu = end use
Establish Base Case:

 Many utilities and task forces have carried out customer surveys which can be used.
 However, these available data have to be supplemented by utilities own efforts.
 Figure above shows the various input data can be used for residential base case analysis.
 In developed countries lot of national and regional information is available so that quite
accurate estimates of average Energy consumption of various appliances can be made.
  Many organizations like electrical power research institute (EPRI), US Department of
Energy, manufacturer organizations etc. have collected lot of data.
 However the data about cooling and heating should be used after correlating it with local
weather conditions and building construction patterns.
 This end use data can be calibrated to estimate present and future Energy requirements of
this sector.
 It is ironical that no such data has been collected in developing countries which require to
adopt DSM strategies all the more vigorously.
(a) Commercial Consumer's base case
 Commercial Consumers include school and other Educational Institutions, Offices, Hotels,
Restaurants, Hospitals, Lodging Houses, Shops, Departmental Stores etc.
 The end use Energy characterization in each year for each commercial building group can
be written as
Ebc,eu = (SMbc) (SATbc,eu) (EUIbc,eu)
 Where, E = Energy consumption in kWh
 SM = square metre of area
 SAT = fraction of total square metre of building for each end use
 EUI = average Energy use/m2 for end use
 bc = building category
 Eu = end use
 In USA, electrical power research institute (EPRI) and some other organization have
collected data of Energy use by various commercial organizations.
 This data can be used with suitable modifications wherever necessary.
 The commercial end use characterization is used to prepare estimates for total Energy and
power demands of this sector.
(b) Industrial Consumers' base case:
 Industrial Consumers include small, medium and large scale industries.
 In addition to the size, the type of industry also determines the Energy consumption.
 The end use characterization can be written as,
Eit,eu = (TCit) (SATit,eu)
 Where, E = Energy consumption in kWh
 TC = specific total sector Energy consumption
 SAT = fraction of total Energy consumption for each end use
 'it' = industry type
 'eu' = end use
 (c) Agricultural Consumers' base case:
 For agricultural Consumers, the end use Energy characterization in each year can be written
as,
Eeu = (A) (SATeu) (EU)
 Where, E = Energy consumption, kWh.
 SAT = fraction of total agricultural area being irrigated through pump Sets
 EU = Energy use per unit area
 'eu' = end use
 Similar base case characterizations can be prepared for other categories of Consumers.
Step 2: Identify measures:
 In this step, a comprehensive list of Energy conservation and demand management measures for each
category of Consumers is prepared.
 The method of analysis available to determine the best measures to be incorporated by the utility into
DSM program are,
(a) Qualitative screening analysis.
(b) Maximum technical potential (MTP) analysis.
(c) Economic screening analysis.
(a) Qualitative screening analysis:
 In this step the best measures suited to the utility for inclusion in DSM option are identified.
 Simultaneously, the inappropriate measures are eliminated.
 The criteria to screen out inappropriate measures include poor customer acceptance (equipments
which are difficult to install so that the Customers would not accept these measures), poor utility
match (equipments have already reached their maximum saving potentials or equipments not suited
to the climate of that area or equipments inappropriate to building patterns in that area etc.),
Technological maturity (equipments not Commercially available), savings variance (equipments or
methods whose savings potential cannot be estimated precisely), availability of better measures etc.
 After this qualitative screening, the next step i.e., maximum technical potential analysis (MTP) is
taken up.
(b) MTP analysis:
 In this step, the technical potential for measures suitable for that area is estimated.
 These measures have already been identified in step 1, MTP is limited for Energy efficiency
measures.
 This analysis is done in two steps.
 The first step is purely Theoretical because it assumes that all inefficient equipments can be replaced
by most efficient ones. This estimate ignores the fact that this would not be possible in most cases.
Discarding old equipments (Geysers, Air Conditioners, Motors, Refrigerators etc.) and replacing
them by new Energy efficient ones is not that easy.
  The second analysis is done on the basis that only the customers purchasing new equipments or
replacing old equipments (for reasons other than DSM) will adopt and purchase the efficient
equipments. Finally, all equipments are assumed to be replaced by more efficient ones so that the
above estimates tend to converge over time. In this analysis also the unsuitable measures may be
screened out.
(c) Economic screening analysis:
 In this final step the cost effectiveness of each measure is evaluated and a cost benefit analysis is
carried out.
 This analysis provides information about the financial savings of each measure.
 These financial savings become a base for deciding the incentives and rebates which can be given to
the customers.
Step 3: Development of programs:
 The measures to be adopted have already been finalized in the previous step.
 In the third step, the programs to implement these measures are prepared and finalized.
 The items in this step are, program description (i.e., preparation of brief overview of program concept,
promotional strategy etc.), strategy for implementation (to overcome market barriers), incentives
(loans, rebates etc.). to popularize the program, participation (target market size, penetration rates,
participation level etc.), Load impacts (estimates of expected seasonal and time of day Energy and
demand impacts per Consumer) on utility and participant’s costs (estimates of likely costs are for
promotion of DSM, incentive, administration etc. and Consumers' costs are for replacement of
equipment etc.).
Step 4: Initial evaluation of programs:
 This step involves exact cost benefit analysis of the proposed DSM programs.
 Generally, the cost benefit analysis is carried out more than once, the repeated calculations ensure
that only the best and most customer effective programs are adopted,
Step 5: Implementation:
 In this step, the details of implementation are worked out, the method of implementation is decided.
 The project to implement the program is identified.
 The rebates and incentives are decided.
 The program may be implemented either directly by the utility or through a contract, many utilities
in developed countries prefer implementation through contract so that the utility may not have to
appoint extra permanent staff for this purpose.

DIFFERENT TECHNIQUES OF DSM

1. Time of day pricing and metering,
2. Multi-utility power exchange model,
3. Load management,
4. Load priority technique,
5. Peak clipping,
6. Peak shifting,
7. Strategic conservation,
8. Energy efficiency improvement
9. Different time zones
10. Tariff interventions
11. Rain water harvesting
1. Time of day pricing and metering:
The rates which vary according to the time of the day is called time of day pricing, it is already
being practiced in India for HV Installations / industries /large commercial installations Should be
extended to other installations in India; for all Loads above say, 10 kW, Much wider practice all over
the world.
2. Multi-utility Power Exchange Model
Different utilities connected through the grid Shifting of Loads from one utility to the
Other. Optimizing the peak Load handling capacity < 10% difference between peak and average Load
is desirable.
3. Load management as a DSM strategy:
 The total demand of an area keeps on varying depending on the time of the day and the season.
 Load factor is the ratio of average power to peak power. A high Load factor means lower cost of
generation as shown in graph.
 Every utility tries to improve the Load factor to a value close to unity.

Fixed cost

0.2 0.4 0.6 0.8 1.0

Load Factor
Fig: Variation of Generation Cost with Load Factor

 Load management is the concept of changing the Consumer's Electricity use pattern.
 Load management has the purpose of improving the effective utilization of the generating
capacity and encouraging the best use of Electricity by all Consumer categories.
 Moreover, the forced outages are reduced and the service reliability is improved
 By controlling the Load at Consumer's premises, the Load curve can be flattened.
  In this way, the power generation by low efficiency generation units can be minimized and some
forced outages are avoided.
 The peak Load reduction can make it possible to postpone the building of new power stations.
 By this considerable savings can be achieved.
 Moreover, addition of new transmission and distribution facilities can be postponed thus resulting
in additional savings.
 The scope of Load management includes planning, development and implementation of
programs whose objective is to actively shape the daily and seasonal Load profile of Consumers
so as to result in better overall capacity utilization and lower the costs.
 It is neither necessary nor feasible to alter the timings of operation of all devices at Consumer's
premises.
 In residential areas the control of air conditioners, space heaters, water heaters and irrigation
pumps can produce better results than control of illumination Loads.
 Industrial Loads should be controlled provided, the production does not suffer.
 Load control can be achieved in different ways.
 Firstly, the Consumers may control their Loads voluntarily by altering the use of their equipments
in response to tariff signals.
 Secondly; the utilities may control the Consumers' Loads using a signal activated either remotely
or at the point of use. Both these methods have more or less the same impact on the Load shape.
 In India the only method used by electric utilities is to de-energise a feeder (or a section) during
peak demand hours so as to reduce the peak demand.
 The control techniques for control of Load can be classified as direct Load control techniques,
local Load control techniques and distributed Load control techniques.

Load management results

 Load factor is the ratio of average power to peak power. A high Load factor means lower cost of
generation as shown in graph.
 Every utility tries to improve the Load factor to a value close to unity.
 USA recognized the importance of Load management soon after the oil crises of 1973.
 Till 1990 more than 1750 Load control projects sponsored by more 500 utilities had been under
taken.
 The total numbers of Loads involved were 13 million.
 The Loads involved were water heating systems, space heating systems and central air
conditioning system. Since then more and more utilities have undertaken similar programs.
 All the three types of controls viz, direct, local and distributed have been used.
 It has been reported that because of Load control measures in USA, the average reduction in
Load ranges from 1 kW/point for winter water heating to 28.7 kW/point for irrigation pumps.
  Utilities in Canada, especially Quebec and Ontario, have also undertaken Load management
programs.
 Load management schemes have also been put into operation in Australia, New Zealand, Italy,
France, England, Germany, Switzerland and many other countries.
 It has also been reported that Load control measures have led to considerable off peak Energy
utilization in some countries
4. Load priority technique:
 Load shedding widely used practice in India through 1l kV & 33 kV feeder control not very
scientific and cannot differentiate between Consumers not a smooth way of managing the Load.
 Giving priority to important Loads by listing of important Loads.
(a) Direct Load control technique:
 The utility controls the Consumer' Load without any interaction with Consumers.
 One example of this technique is the power line carrier or ripple control system as used in
Europe.
 This ripple causes the shedding of Consumers' space heating and water heating Loads.
 After this technique was evolved and implemented, these ripples were also used to
implement time of use (TOU) Rates.
 In some cases ripple control is used to send signals to industrial Consumers who have agreed
to adopt DSM.
(b) Local Load control technique:
 In this technique, the Consumers control the Loads.
 One method to implement this technique is to have a circuit breaker at the Consumers'
premises.
 When Load exceeds a certain value (as per circuit breaker setting), the supply is switched
off. Generally, the Consumer can identify the appliances which he can use simultaneously
without exceeding the Load limit.
 Another way is to have interlocking devices which do not allow connection of several major
power consuming devices at the same time.
(c) Distributed control technique:
 In this technique the Consumers control their Loads in communication with utilities.
 This technique is used mainly for large industrial Consumer with whom the utilities have
special contracts such as interruptible Loads.
5. Peak clipping:
 Peak clipping is defined as the reduction of utility Load primarily during peak demand Other
terms for peak demand control is the Ripple control through identified Loads.
 Shifting Electricity Consumption from peak to non-peak hours, appeal to large Consumers for
relief during peak hours.
  Peak clipping or peak Load reduction is one of the classical forms of Load management.
 Here, some of the Consumers' appliances are switched off by direct Load control for some time.
 Evidently, these appliances are those which consume large power and whose disconnection for
some time can be tolerated much inconvenience.
 It can be more beneficial in case of large industrial Consumers.
 The relative peak clipping potential will be different in different industries.
 The ceiling demand required to be imposed in every case should be worked out in consultation
with the participating industry and the time period required for this, when arithmetically summed
up, should not exceed the power availability forecast for the cluster during that period.
 Figure below shows peak clipping.

6. Load shifting:
 Load shifting is the reduction of utility Loads during periods of peak demand, while at the same
time building Load in off peak periods.
 Load shifting typically does not substantially alter total Electricity sales, During the periods of
power shortage some dispensable appliances are switched off.
 The appliances are such that their switching off causes only minor inconvenience to Consumers.
 Load shedding can be done on the entire system simultaneously or on different parts of the
network turn by turn.

7. Load shifting:
 Valley filling is the improvement in system Load factor by building Load in off peak periods.
 lncremental costs during off peak (generally night) hours are less the average costs of Electricity.
 In such case building up Loads during off peak hours may be advantageous.
  During nights there is surplus of generating capacity.
 By using this capacity economy of the utility can be improved.
 A part of these savings can be passed on to Consumers as incentive.
 Some heavy power appliances (irrigation pumps, water heaters etc.) are switched off during peak
hours and switched on during off peak hours. This is known as valley filling and is shown in the
Figure.

8. Strategic Energy conservation:

 Strategic Energy conservation is the reduction of utility Loads, more or less equally, during all
or most hours of the day.
 Conservation of power in strategic locations aims at peak voltage management, reducing kVAR
Loads at tail ends appeal to Energy intensive industries
 Photo sensitive switches for street lights. Strategic Energy conservation is the reduction of utility
Loads, more or less equally, during all or most hours of the day.
 Conservation of power in strategic locations aims at peak voltage management, reducing kVAR
Loads at tail ends, appeal to Energy intensive industries and Photo sensitive switches for street
lights and encouraging the use of high efficiency equipments.
 Thus it leads to reduction in Energy wastage. This leads to lower costs and lesser damage to
environment.

9. Strategic Energy conservation:

 Load building is the increase of utility Loads, more or less equally, during all or most hours of
the day.
  These Loads are the ones which produce a general increase in sales beyond any increase from
valley filling.
 It may be achieved by increasing the market share of Loads or can be served by other fuels as
well as general development.

10. Flexible Load shape:

 The utility is allowed to adjust the Load shape to meet the reliability constraints.
 The Consumers are given incentives for reduced levels of service.
 The most common reduced levels of service are interruptible or curtailable service.
 Devices as available which can limit the power and Energy that individual Consumer Can draw.

11. Energy efficiency improvement:

 T&D loss reduction is the biggest source of DSM, Efficiency improvement in end use
applications Improvement in agricultural pumping sets, Usage of CFLs/LEDs in place of bulbs,
BEE's estimation of savings: 10,000 MW, Prayas Energy's study: 30 % savings in households;
 Corresponds to about 25,000 MW of avoided generating capacity. Education programs to educate
Consumers about use of Energy efficient devices have been undertaken in many countries.
 Many new technologies for Energy saving have been developed in USA, Germany, Japan and
some other countries. It has been reported that due to the use of most efficient devices, in USA,
the average consumption in refrigerators fell from 950 kWh/year and in deep freezers from 1100
kWh/year to 835 kWh/year.
 These figures pertain to the period 1990-93. Many end use efficiency programs including
cogeneration, promotion and sale of Energy efficient devices, Energy audit, Energy labeling of
appliances etc. have been initiated and implemented in Australia. In Germany the electrical
Energy consumption has decreased by about 20% for washing machines, 30% for dish washers
and 45% for freezers during the past 15years.
  In Sweden an improvement in the end use efficiency method have resulted in reduction in Energy
consumption of refrigerators from 1.4 kWh/litre/year to 0.9 kWh/litre/year. Similar decrease in
Energy consumption of various appliances has also been reported from UK, France, Japan and
other countries.
12. Different time zones:
 Appears to be necessity, India's large spread across longitude; 80 Minute spread, Shifting of Peak
Load from one to other time zone, needs adequate transmission capacity, HV DC lines and (JHV
systems are required for this purpose.
13. Tariff options for DSM:
 To discriminate between legitimate use and luxuries/ wastages, should discourage wastage and
encourage efficiency, very high tariff for higher usage in commercial and domestic usage, much
higher demand charges for higher connected Loads, early introduction of feed-in tariff for
renewable Energy sources, the function of a tariff structure should be to have an efficient use of
resources.
 To achieve this goal, Consumers should receive correct information about the costs in delivering
power.
 Tariff should also lead to a balance between supply and demand so that Load shedding etc., can
be avoided.
 The ultimate aim of Load management is to reduce the average cost of electric power.
 To achieve this objective, Load control through proper tariff structure should be applied to
improve the system Load factor.
 This would lead to a reduction in the need for peaking capacity and a higher utilization of the
generating units.
 A proper tariff structure can itself lead to peak clipping and valley filling.
 This can lead to improved service to Consumers and measures such as Load shedding may not
be required.
 The guiding principle for tariff design should be that each Consumer category should be charged
equitably for its contribution to the total costs for generation, transmission and distribution of
electric power.
 The subsidised Electricity tariff for some sections of economy always leads to wastage of Energy.
 Tariff structure can be used as a means for achieving DSM objectives because Consumers
respond to Electricity bills by changing their level and pattern of usage.
 It has been found that Consumers respond in a predictable to alternate rate structure.
 Through appropriate price signals, Consumers can be encouraged to recognize that Electricity is
not easily stored and that generating costs may vary considerably across the Load curve as
increasing demand is met by relatively expensive peak duty generating plant.
 A properly designed pricing policy can defer investments in new generating capacity be creating
incentives for the customers to shift Load from peak hours to off peak hours as well as induce
customers to invest in Energy conservation measures.
 The cost per unit of Energy varies with time of the day and season.
 Generally, Consumers are charged per unit of at all times of the day at the same flat rate.
 The variation in the cost of generation over a time period is not reflected in the rate charged for
the customer.
 Marginal cost based tariffs send the right price signal to Consumers, which helps them to make
appropriate decisions when deciding on the purchase and use of Electricity.
 Marginal cost of power supply is defined as the change in cost of service resulting from small
changes in demand.
 This cost may change according to the place and time of use (TOU).
 Marginal costs are a reflection of the costs incurred by utility to meet additional demand of
Energy.
 These types of tariffs not only cover the historical costs but also provide a revenue that is high
enough to cover the incremental costs arising from new investments (in generation, transmission
and distribution) needed to meet the extra demand.
 Marginal cost based tariffs provide the utility with some leverage to control future Load growth
and Load shape and can therefore, be used as a management tool in DSM programs.
 The tariff structures which can promote DSM activities are as under.
(a) Time of day tariff (TOD tariff):
 It is also known as time of use (TOU) tariff The technical development of metering
equipment has made it possible to measure Energy consumptions during different times of
day, days of week and periods of year, economically.
 TOD rates make Electricity, more expensive when it costs more to generate additional
Electricity during peak hours and cheaper during off peak hours.
 Such a tariff structure encourages Consumers to shift their Load, whenever possible, from
peak to off peak hours thus flattening the Load curve.
 This would be favorable to the customers who find their bills reduced and also favorable to
the electric utility would gain by a decrease in peak Load.
(b) Seasonal Tariff:
 In this tariff structure, the rates change across the season.
 This type of tariff is an economical way of managing demand.
 Since the peak consumption months are more or less fixed, the tariff can be adjusted to reflect
seasonal demand variations.
 Thus, the cost of Electricity is more during certain months of the year than that during other.
 This tariff system does not require the special Electricity meters needed for (TOD) tariff.
  Evidently the Electricity billing frequency has to be synchronizing with the times seasonal
rates come into effect.
(c) Curtailable / interruptible (CA) rates:
 C/I rates offer incentives to those Consumers who reduce demand to a predetermined level.
when they a notice to this effect from success of this tariff system depends on reliable
communication system.
 It is an accepted fact that offering incentives and pricing options to Consumers is the best
way to promote DSM.
 In USA. bill credits range from $l to $5 per month for water heaters, $1.25 to $12per month
for air conditioners and $1.5 to $29 HP / year for irrigation.
 In addition 7% to 50% rate reduction per kW demand, 8% to 20% rate reduction per kWh
and $0.003 to $0.061 per kWh discounts offered by many utilities.
 Some utilities offer inconvenience payments of $25 to $150 per year. In UK, a tariff known
as 'Economy' offers Electricity during night time at less than half the day time rate.
 In Ontario (Canada) DSM programs have resulted in annual savings of $27 to $48 per month.
 In France a 4 time period per day tariff structure has been proposed for small industrial
Consumers.
 Similar incentives and multiple pricing options exist in a large number of countries in Europe
and else where.

END USE ENERGY CONSERVATION

 End use conservation programs form a very important aspect of DSM.

 These programs reduce the customers' consumption of Energy thereby reducing their Electricity
bills.
 Cost effective conservation options reduce overall requirement of the utility and serve to reduce
Electricity tariff for all Consumers.
 The utilities and governments in all countries have undertaken a number of Programs to improve
efficiency of various appliances and to promote the use of such Energy efficient appliances.
 These programs include help to industries in manufacturing high efficiency equipments,
information and education programs, Energy audit schemes, subsidies for equipment finance;
equipment efficiency programs have limited effect unless supplemented by financial benefits.
 The various aspects of end use Energy conservation are as under.
1. Least cost utility planning:
 It is an established fact that investments in Energy conservation and Load management activities
are less expensive per kW than addition of new generation facilities.
 In order to decide the best mix between capacity additions, conservation and Load management
programs, many utilities in developed countries carry out least cost planning process.
  In this analysis the costs of new capacity additions, supply side efficiency improvements, end
use efficiency measures are all examined critically.
 The mix of resources which can meet the future power & Energy needs at the lowest cost are
selected.
 This planning process can lead to substantial savings because some new projects can be
substituted by low cost efficiency improvement methods.
2. Promotion of high efficiency technologies:
 Many efficiency measures with good saving potential have been implemented in some countries.
 Examples are, improved efficiency refrigerators, air conditioners. evaporative coolers, fan
Motors etc.
 Similarly electronic ballasts for fluorescent lights. variable speed drives using power electronics
devices can also lead to substantial savings.
 The strategy should Research and Development and demonstration with an emphasis on adopting
technologies overseas to the Indian context.
1. Technical and financial assistance to the manufacturers so that high efficiency equipments
are manufactured.
2. Selective reduction in import duties for manufacturing equipments (needed to
manufacture high efficiency devices indigenously) as also the actual high efficiency
devices.
3. Mandatory efficiency standards for equipments.
4. Preference for high efficiency devices by government and semi-government agencies,
3. Energy Conservation Opportunities in Agricultural Sector:
 Agricultural sector account for about 30% of Electricity consumption in India.
 The current Energy consumption in this sector is about 93000 million kWh) and the total number
of pump sets is 11,850,000.
 About Two lakh pump sets are added every year.
 It is evident that improved efficiency of agricultural pump sets can lead to enormous savings,
The metering of Electricity to irrigation pump sets is necessary.
 In many states the agricultural pump sets are charged flatly per kW of the rating of the Motor.
 This practice leads to a lot of Energy wastage.
 Use of inefficient Motors and sub-standard accessories is leading to huge wastage of Energy.
 Use of drip irrigation keeping the pipe fitting losses to the minimum and the operation of pumps
& threshers during Off peak hours can also lead to saving in Energy and Energy costs.
4. Energy conservation opportunities in illumination systems:
 A conventional incandescent lamp has a luminous efficiency of 12 lumens/watt.
 Fluorescent lamp has a luminous efficiency of about 60-70 lumens/watt.
 Compact fluorescent lamps (CFL) are all the more Energy efficient.
  Moreover, CFL has long life and is environment friendly.
 CFL offer about 5% to 15% increase in efficiency (as compared to conventional fluorescent
lamp) and provide good color rendering.
 Moreover, replacement of 40W fluorescent lamps by 36W CFL leads to 10% savings for the
same illumination level.
 A conventional choke consumes about 12-15 watts and operates at a very poor power factor.
 Electronic ballasts require only about 1-4 watts of power and operate at good power factor.
 The only inhibiting factor is the higher cost (about Rs 300) of electronic ballast as compared to
about Rs 80 for conventional magnetic ballast.
 High pressure sodium vapor lamps and high pressure mercury vapor lamps should be preferred
for street lighting.
5. Energy conservation opportunities in Fans and Refrigerators:
 Fans are used very extensively in summer months.
 Use of high efficiency fan Motor and use of electronic regulator (in place of conventional
resistance regulator) can lead to about 20% saving in Energy.
 The fans with aerodynamic designs and improved impeller consume about 10% less Energy but
are 30% costly as compared to conventional fans.
 However, it is important to note that electronic ballasts introduce harmonics in the system.
 The efficiency of refrigerators in India is rather poor.
 A typical 165-liter Indian refrigerator consumes about 540 kWh/year.
 On the other hand, the 200-liter Korean model consumes about 240 kWh/year.
 High efficiency refrigerators are not manufactured in India.
 These refrigerators use a different compressor design which is very sensitive to voltage of electric
supply.
 Unless quality of electric supply is improved these refrigerators cannot be introduced in India.
 Nevertheless, use of better insulation technique can bring about some improvement.
6. Energy conservation opportunities in cooling and heating systems:
 Air conditioners consume lot of Energy. Efficiency of air conditioner is expressed in Energy
efficiency ratio (EER) which is BTU of cooling output divided by watts of input power.
 BIS calls for an EER of 6.6-7 whereas most of the air conditioners used in India have an EER
ratio of 5.0 only.
 Efficiency of central AC systems can be improved by carefully designing the buildings to reduce
heat gain into the buildings, improved thermostat and other controls.
 Slight reduction in thermostat setting can lead to considerable saving without loss of comfort.
 Reliable door closers can enhance the effectiveness of air conditioning by checking infiltration
of outside air into the room.
 Desert coolers are widely used in India in summer months.
  A typical cooler consumes 20% more Energy than BIS standard.
 The efficiency of a cooler can be increased by an improvement in efficiency of fan Motor and
that of water circulating pump.
 It has been reported that extra cost of Rs 500/cooler can lead to 20% improvement in efficiency.
 Energy savings in water heating can be achieved by using better insulation techniques.
 Reduction in Energy use by the water heaters can be achieved by covering the tank with an
insulating blanket made of fiber glass and backed with vinyl.
 These blankets can also be used to cover the sides of water heater.
7. Energy conservation opportunities in industrial sector:
 Electric Motors are very widely used in industry.
 The most common Motors are squirrel cage Induction Motor (up to a few kW rating) and wound
rotor induction Motor (for large kW requirements).
 Use of high efficiency Motors can mean an Energy saving of 2-5%.
 However high efficiency Motors are about 25-35% more costly than the standard efficiency
Motors.
 Moreover, the use of Motors made by standard manufacturers is also pretty common.
 These Motors are highly inefficient and operate at poor power factor.
 The rewinding of Motors reduces their efficiency because of poor rewinding, use of thinner
conductor (than that required for the Motor size) and poor quality insulating materials.
 Power electronic variable speed drives are Energy efficient but expensive.
 Their use can lead to Energy savings. Cogeneration should be encouraged in the industrial sector.
 Sugar, paper, textile, fertilizer, cement, chemical and pharmaceutical industries offer a good
scope for cogeneration.
 The cogeneration systems are very Energy efficient.
 The use of non-fossil fuels in some industries like sugar can lead to enormous saving of fossil
fuels.

DSM IMPLEMENTATION STRATEGIES

Some of the strategies which can lead to successful implementation of DSM are,

1. Market transformation through voluntary retirement:

 The utilities should engage in direct negotiations with manufacturers to ban manufacture of low
efficiency devices.
 Moreover, the utilities should take up market campaigns to promote Energy efficient devices.
 People should be educated about the replacement of poor efficient devices by new and more
efficient devices.
2. Energy efficiency labeling:
 All participating brands of refrigerators, air conditioners fans coolers, pumps etc. should carry
an efficiency label which indicates efficiency, annual kWh consumption etc.
 This should induce customers to go in for Energy efficient devices.
3. Customer oriented program design:
 Each customer has unique Energy requirement and financial position.
 Therefore DSM programs should be flexible that needs of every customer can be accommodated.
4. Public privates sector partnership:
 Design and development of Energy saving devices needs special knowledge and skill.
 Utilities should subsidize the manufacturers in the development of such devices, at least partly.
 Establishing a funding mechanism for DSM investments is essential for long term sustainability.
 Assurance of cost recovery for cost effective DSM investments is critical.
 It is difficult to convince utility managers to engage in DSM activities.
 DSM expenses, if prudently incurred, are automatically passed on to all Consumers through fuel
adjustment charge.