Energy Conservation & Audit – BEE755B 2025-26
5. Energy Audit Applied to Buildings
Syllabus
Energy Audit Applied to Buildings: Energy – Saving Measures in New Buildings, Water
Audit,Method of Audit, General Energy – Savings Tips Applicable to New as well as Existing
Buildings.
Demand Side Management : Scope of DSM, Evolution of DSM concept, DSM planning and
Implementation, Load management as a DSM strategy, Applications of Load Control, End use energy
conservation, Tariff options for DSM.
5.1 Introduction
"It is very surprising that when buying a new car, people are very much concerned about economy, but
when buying a new home or making a new building (whose lifespan is much longer than a car), energy
is of least concern though consumption of energy and its impact on environment is almost equal in
both cases. If we look at the worldwide energy-consumption scenario, in developed countries, energy
consumption is slightly higher than the population growth rate, but in developing countries like India,
the expected growth in energy-consumption rate is 1.3% compared to the expected population growth
rate of 1.3%. Again, the construction-industry growth is 10% in India compared to the world average
of 5.2%, which is an alarming rate of energy consumption in the building sector. Commercial
buildings are the largest energy consumers after industry and agriculture, and consume more than 20%
of the national share. In properly planned energy-efficient buildings, energy saving of 40 to 50% can
be achieved and the same for an existing building is 20 to 25% by adopting retrofits and proper
maintenance schedules. When talking of energy efficiency in buildings, there are two major aspects—
designing and making an energy-efficient building using ASHRAE or ECBC codes, and following
concepts of green buildings or adopting retrofits and maintenance checks to reduce energy
consumption of existing buildings. Green buildings are structures environmentally responsible and
resource-efficient throughout a building's lifespan. Starting from design, construction, operation,
maintenance, renovation and demolition—all processes are executed for minimum energy
consumption and environmental impact. LEED (Leadership in Environmental and Energy Design) is a
USA-based rating programme which assesses buildings against a set of established environmental
performance criteria of energy, water usage, material usage, air quality, etc. LEED also provides
certification (bronze, silver, gold, or platinum), accreditation, training, and practical resources. To
obtain LEED certification, a building has to satisfy certain prerequisites and performance benchmarks.
A few Indian buildings certified by LEED are listed in Table 14.1 For a detailed list, refer the website
[Link]"
Energy Conservation & Audit – BEE755B 2025-26
Project name Location LED rating
One Earth (Suzlon's global headquarter) Pune Platinum
Tzed Homes (Biodiversity conservation India Ltd.) Bengaluru Platinum
Olympia Technology Park Chennai Gold
ITC Green Centre Gurgaon Platinum
Rajiv Gandhi International Airport Hyderabad Silver
"The Government of India has launched ECBC—Energy Conservation Building Codes. These are
voluntary codes applicable to buildings having a connected load of 500 KW or a contract demand of
600 KVA. These codes state minimum standards for building envelop, equipment, systems, hot-water
heating, lighting, motors, etc. This chapter discusses energy-saving potential in new as well as existing
buildings. HVAC and lighting are two major sectors where energy savings are possible and they are
discussed in Chapters 9 and 13 respectively; hence, detailed discussions on HVAC and lighting are
excluded from this chapter.
5.2 Energy – Saving Measures in New Buildings
As we know, conduction, convection, and radiation are three modes by which heat is transferred from
high-temperature atmospheric air to the building envelop. Chart 14.1 shows approximate heat gain by
a building by different heat sources. As shown in the chart, the highest amount of heat is poured
through glazed walls followed by internal-heat gain and roof-heat gain. Some energy-saving aspects to
reduce heat gain and, thereby to reduce energy consumption, are discussed here.
5.2.1 Maximize Use of Natural Energy Flow
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HVAC need of the building is directly related to difference between inside and outside temperatures. A
well-designed building maximizes natural energy flow, i.e., use of cool air in summer and trapping and
storing solar radiation in winter—minimizing the burden of the HVAC system and thereby reducing
power consumption. How to maximize use of natural energy flow depends on geographical location
and surrounding climate of the building. This is also known as passive design of the building. Key
elements describing passive design are discussed here:"
Orientation of Building Orienting a building in the proper direction will have passive heating and
cooling in all weather and helps reduce energy bills. A building should have minimum exposure in
south and west directions to reduce direct heat load from sunrays for Indian latitudes and longitudes
falling in hot regions.
Insulation Insulation is selected based on several criteria like lifespan, cost, applicable temperature
range, weather effect, etc. Some building materials like concrete, brick, etc., serve the purpose of
insulation. They also average day and night temperature difference, and thereby increase comfort at
reduced energy cost.
Maximum heat gain in a building is through glazing and windows. Thus, they are designed and located
to maximize cool breeze to enter the building in summer and minimize winter winds to enter the
building in winter.
Skylights As mentioned in Chapter 13, use of daylight is the ideal source in terms of quality Some
skylight options are shown in Figure 14.1.
Figure 14.1 Different fixtures for skylights
5.2.2 Envelop Heat Gain
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The location of a building decides heat gain by its envelop. As our country spreads over a wide
geographical span, different states have variations in average atmospheric temperature. Figure 14.2
shows the general atmosphere of a particular location. A summary of advisable indoor conditions are
given in Table 14.2. To reduce heat gain through building envelops, some suggestions are given here:
1. Select high-performance glazing with low U-value and low light transmittance.
2. Utilize materials like bricks to reduce heat ingress.
3. Select and use proper insulation material on sun-facing walls and roofs.
4. Consider window shades, venetian blinds (window blinds), or tree plantations outside the
building to reduce direct heat gain.
Le
h
Delh
i
Ahmedaba
d Kolkat
a
Hyderaba
d
Legend
s Hot and
Bengalur
u dry
Hot
humid
Composit
eGold
Map of India showing different climatic
zones
Moderate
(map not to scale)
Figure 14.2 Different climate zones of India
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5.2.3 Equipment Selection
When selecting equipment/system, consider the following aspects:
1. Choose equipment with high star ratings.
2. Use variable-frequency drives for ventilation fans, pumps, etc.
3. Select and locate the cooling tower to perform at its best.
4. Use heat-recovery wheels, heat-pipe-based heat-recovery systems, and economizers in HVAC units.
5. Take maximum advantage of time-of-day tariff (pumping of water during night hours to reduce
daytime electricity consumption).
6. Install wind curtains on all openings.
7. Install occupancy sensors on escalators to avoid continuous running.
8. Adopt a building-management system for effective control of equipment.
9. Select and use CFC-free refrigerant in HVAC equipment, which has minimum ozone-depletion
potential.
Climate zone Recommended building conditions
Hot and dry Reduce heat gain by proper orientation.
Decrease exposed surface area.
Increase thermal mass and resistance.
Decrease ventilation during daytime and increase during night time.
Increase use of shades with fins and trees.
Use light colours on wall exteriors.
Use reflective tiles on the roof.
Use open-water surfaces, i.e., ponds, fountains, etc., to increase
evaporative cooling.
Hot and humid Reduce heat gain by proper orientation.
Decrease exposed surface area. Increase
thermal mass and resistance.
Increase ventilation during day and night.
Increase use of shades with fins and trees. Use
light colours on wall exteriors.
Use reflective tiles on the roof.
Use dehumidifiers and desiccant-based cooling systems to reduce
humidity.
Increase ventilation in summer and monsoon and decrease in winter.
Increase use of shades with fins and trees.
Use light colours on wall exteriors.
Use reflective tiles on the roof.
Increase humidity in summer and decrease in monsoon.
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Cold Reduce heat loss.
Decrease exposed surface area.
Increase thermal mass and resistance.
Decrease ventilation.
Decrease use of shades with fins and trees.
Use dark colours on wall exteriors and glass to absorb more solar radiation`
Moderate Reduce heat gain.
Decrease exposed surface area.
Increase thermal mass and resistance.
Increase ventilation.
Increase use of shades with fins and trees.
Use light colours on wall exteriors.
Use reflective tiles on the roof.
Increase humidity in summer and decrease in monsoon.
5.2.3 Insulation
Selection, application, and maintenance of insulation are key factors in energy-efficient buildings.
After selecting appropriate insulating material, it is necessary to install it without any cavity or air gap.
They need to be protected from sunlight, moisture, wind, and other weather effects.
5.2.4 Cool Roof
Maximum solar radiation is received by the roof of the building as it is continuously exposed to the
sun. Heat received by the roof surface is partly absorbed and transmitted to the building and partly
reflected back to the environment. Surfaces having more reflectivity will reduce absorption of heat
and, thus, the building temperature will reduce. Thus, reflectivity and emissivity of roof material
decides the amount of solar radiation received by building. Roofs covered with reflective coatings are
known as cool roofs. The benefit of a cool roof is that temperature is 10 to 15°C lesser than
conventional buildings in peak summer. Use of white-coloured china mosaic tiles or white cement tiles
also reduces solar radiation received by buildings.
5.3 WATER AUDIT
water consumption by various activities. Like energy audit, water audit is also a part of energy
assessment of an existing building. It is an assessment of the capacity of total water produced by the
governing authority and actual quantity of water distributed throughout the assessment area (e.g.,
town, municipal corporation area, township, etc.) The difference between the two is known as
nonrevenue water or unaccounted water. A water audit also gives qualitative and quantitative analyses
of water consumption. Advantages of a water audit are listed below:
1. It encourages social responsibility by identifying wasteful use of water.
2. It promotes water conservation and thereby reduces cost of water distribution and pumping.
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5.3.1 Water-audit Methodology
Like an energy audit, the method to carry out a water audit depends upon many parameters like water
source, population, type of use, climatic condition, source of wastewater generation, legal
requirements, distribution network, etc., and, hence, an audit method is a tailor-made method
applicable to a particular end user. However, general guidelines are given here for carrying out a
water audit.
• Part A: Planning and Preparation It includes data collection and preparation of site sketch.
Prepare a flow chart of the water-distribution system. If bulk water meters are available on the
water-distribution network, collect water-flow rate data and if not available, measure the same
with an ultrasonic water-flow meter.
• Part B: Verification Verify the mapped water-distribution system with the existing water-
supply system for piping layout, valves, connections, etc. Verify that water meters are available
or can be installed at major supply points, tube-well supply to the main line, reservoir supply
line, etc.
• Part C: Data Collection Collect the data of water flow at major inlet points, data of population
density, number of operating hours and per capita consumption or per ton consumption, raw
water plant, demineralization plant, reverse osmosis plant, wastewater plant, etc. 1Also, collect
the data of operating details of various pumps in each stream and operating hours. In case of
any breakdown or scheduled maintenance occurring in history, collect the data for the same.
• Part D: Analysis The information collected will be consolidated and used to prepare overall
and stream-wise water balance, and the location where unaccounted water flow occurs will be
identified. Measure pressure drops in the pipe-distribution network. Further analysis is carried
out to classify the water consumed, wasted, and lost in terms of finance and submitted in the
form of a water-audit report which has key identifications like:
o Locations that need immediate action to repair leak.
o Locations that need water losses closely monitored.
o Estimation of water-pumping cost and suggestions to reduce it by efficient use of pump
or taking advantage of time of day tariff.
5.4 General energy-saving tips applicable to new as well as existing buildings
1. Use solar control glass to restrict solar radiation from pouring through glazing. They permit
light and restrict radiation from entering the building and, thereby keep the building-
temperature low.
2. Keep high-heat-generation processes away from the building or use exhaust/ventilation fans for
them.
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3. Some locations have a big difference in day and night temperatures. It is advisable to use high
thermal mass material (concrete, bricks, tiles, etc.) in such locations, as they are able to keep
the building warm during winter nights and cold during summer days.
4. Replace outdated thermostats with programmable ones.
5. Rather than using an air conditioner, install ceiling fans, as in many cases, air movement is
sufficient for comfort conditions.
6. CFLs consume less power and have long life compared to incandescent bulbs; hence, replace
them.
7. Maintain and clean lamps for best performance.
8. Reduce the number of lamps in nonworking areas or use low-wattage bulbs.
9. Use low-flow faucets and showerheads to save water in bathrooms and kitchens.
10. Avoid acrylic paints or wallpaper; instead, use natural paints or low Volatile Organic
Compound (VOC) paints.
11. Use indoor plants as they add oxygen to the atmosphere and eliminate harmful volatile organic
compounds.
12. Use on-demand hot-water heaters instead of storage-type hot-water heaters.
13. Use low Solar Heat-Gain Coefficient (SHGC) material. SHGC is a measure of solar heat gain
from window glass. An SHGC of 0.3 indicates that the window allows 30% of solar radiation
to pass across the window glass.
14. Encourage the use of electric vehicles in township, campus, etc., and provide electric-vehicle-
charging facility.
15. Promote use of solar, wind, biogas, and biomass energy to reduce burden on the utility.
16. Encourage continuous monitoring of energy performance. Use different meters for external
lighting, water pumping, and HVAC. Measurement and verification is simpler if segregated
data are available.
17. In case of residential and hospital buildings, segregate waste (dry, wet, paper, plastic, metal,
glass, surgical, etc.) before sending them to landfills. Also, collect batteries, lamps, and e-waste
separately. Identify the scope of recycling green waste in the campus.
18. Encourage use of salvaged building materials and products instead of virgin material.
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5.5 Introduction to Demand side mangement
A number of definitions exist for DSM. The term demandside management is the result of a
logical evolution of planning processes used by the utilities in United States in the late 1980s [16].
Demand Side Management (DSM) can be defined as a set of techniques that consist of a broad range
of planning, implementing and monitoring of activities designed to encourage end users (consumers of
electricity) to modify their levels and patterns of electricity consumption, mainly with a view to shift
part of the consumption from peak demand period to non peak demand period.
DSM IN INDIA
Utilities in India have recognized DSM as an integral constituent of their operational planning.
Utilities have designed DSM programmes to encourage customers alter their habit of electricity usage
to make the load as consistent as possible. DSM programmes have been designed with a view of
changing both the timing and the magnitude of utilization of electricity. Exercising of such an activity
proves to be beneficial and cost effective, thereby maximizing productivity of utilities resources.
Consumers benefit by having better control on the usage of electricity and thus on the kWh costs. A
comprehensive methodology for implementing a DSM programme, with a sole objective to influence
the demand for the mutual benefit of the utility and the customer is presented in the next section.
PLANNING AND IMPLEMENTATION STARTEGY Utility is responsible for planning and
developing DSM programme implementation strategy. However, other implementers include
government organizations and regulators,
profit as well as non profit groups, or a collaboration of different stakeholders may also be involved in
the development of DSM programme planning and implementation strategy. Utilities, in India are
bounded to provide reliable supply of electricity to the consumers at minimal costs. Various steps
formulated by Indian utilities for implementing a particular DSM programme are shown in
Fig. 3. Step wise action plan for implementing a DSM programme in India
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Each of the steps shown in Fig. 3 are described in details below.
A. Assessment of current electricity market Preliminary information about the utility’s current
situation is assessed. The data generated during the assessment reflects the current status, performance
and operational costs of the utility which then acts as a standard reference point for comparing the
advantages and costs of alternative solutions incorporating DSM programmes. Information such as the
growth perspectives for prices and fossil fuel supply conditions for power stations, portion of
electricity generation through independent sources, annual rate of electricity exported/imported,
efficiency of metering and billing systems, losses in transmission and distribution networks and in the
electro-mechanical equipment, etc are the subjects to be considered during DSM planning.
B. End use demand / load forecasting Mid-term and long-term forecasts of variations in power demand
are significant in planning and development of a DSM programme. In situations where such forecast
data are not available, these are then developed at the beginning of the DSM programme plan after
conducting a preliminary research about the utility’s situation in the electricity market along with
appropriate exercising of demand forecasting. Such a forecasting scheme involves inclusion of the
following aspects of load: • Sector – wise (residential, industrial, commercial, municipal, agricultural,
and transport) estimation of electricity consumption and peak demand to derive load curves of each
sector and in specific times, of end-use. • Calibration of the consumption and peak demand to macro-
economic variables (households, industrial output, floor space, etc.) using estimates of the efficiency
of the current technologies used to meet each end-use [17]. • Estimation of future electricity
consumption and peak demand by separately changing macro-economic variables, stock-turnover and
additions, fuel share and end use technology efficiency.
C. Load/ Market Research
For an effective DSM programme, it is important to know trend of electricity consumption by the end
user and to what extent of efficiency is being attained at that use. Load research involves the collection
and analysis of the load data (system location, customer class, time, magnitude, etc), collected from
different locations of the distribution system. Major sectors of interest to DSM programmes include
the residential, commercial, industrial, municipal, agriculture and transportation (majorly railways)
sectors. To evaluate possible solutions of the barriers, market research through customer survey is
necessary to be carried out. Such surveys determine equipment and appliance usage, decision making
criteria, and views on different types of programmes. It is also important to carry out a survey of local
manufacturers and suppliers to assess the availability of efficient products and services and their
manufacturers.
D. Define load shape objectives
After forecasting the demand and gaining enough knowledge about the way electricity is being
consumed; the DSM planner specifically selects and defines a load shape objective. Although there
can be infinite combination of loadshape changing possibilities [18] the most commonly used patterns
globally have been illustrated in Fig. 4. Such patterns are peak clipping, valley filling, load shifting,
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strategic conservation, strategic load growth, and flexible load shape. These are not mutually
exclusive, and may frequently be employed in combinations. Techniques of peak clipping, valley
filling and load shifting are regarded as traditional forms of load management, intended to level the
load curve of the electricity demands, as obtained after step 2 of the planning stage.
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A utility would find it easier to provide electricity in conditions where the load is as consistent as
possible. Utilities in India face with severe difficulties to manage its production and constantly follow
the changes in load profile, and load shedding is the most simple and common way to manage the
increased demand, under situations of inadequate supply. The utilities thus should develop
programmes which would stabilize the load curve and reduce operational and kWh costs. Valley
filling, on the other hand, has advantages of increasing the sales and thus, improving system load
factor by building load in off-peak periods, enabling to compensate for the losses incurred during peak
clipping [19]. Strategic conservation, strategic load growth, and flexible load shape are nontraditional
load shape changing options which share a common objective of making the load curve profile as
consistent as possible achieved through direct influence on the electricity market. Induction of CFL
technologies, large scale availability of energy efficient motor, pump-sets are some of the examples of
such objectives of load shape change in India. India has peaks of equal significance occurring in the
daytime and night time, along with a total different pattern of consumption in different end use sectors.
During the daytime, the peak loads are majorly industrial and business loads whereas peak occurring in
the evenings are largely attributed to the residential sector. Such a situation demands the DSM
programme to be designed that addresses all the types of the end users of different sectors; though such
a programme would be comparatively costlier.
Identify sources of financing
DSM requires large investments. Utilities require financing to cover administrative costs and cost
sharing investments [20]. A number of options like direct and performance contracting by utility,
performances contracting by ESCOs, leasing options are available to finance a DSM programme.
Regulatory commissions of India play significant role in arranging funds for utilities. To attract private
equity and loans from commercial and development banks, utilities in India need to develop a sound
marketing strategy.
Programme selection and design
After selection of load curve modification techniques, the next step in planning of a DSM strategy
involves formulation of observations and a preliminary strategy for load-curve management. Such an
action involves preparation of a grid as shown in Table 1. For any particular load curve modification
objective, the potential end-uses which are acceptable to the customers or which can be adjourned may
be identified from a matrix. An example of such matrix developed considering the electricity
consumption pattern of India is shown in Table 1. This allows the planner to rapidly propose load-
curve management strategies and programmes. Similarly, the planner should also examine and prepare
similar grids for different sectors of electricity consumption.
Performing cost – benefit analysis
Benefits of a DSM programme are the number of kWh per year savings achieved and reductions
achieved in peak demand. The value of these savings to a consumer depends on the tariff (electricity
price and demand charges). Possible benefits including maintenance and labour saving benefits
associated with the efficient technology value to the power utility and to society at large depending on
the avoided or long run marginal cost of new energy supply (e.g. a power plant and/or transmission
line). This avoided cost is the energy cost for the next kW capacity added to the system. The avoided
cost depends on whether the savings are at peak or off peak times and whether excess capacity is
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available at that instance. All stakeholders benefit if these avoided energy costs escalate in real terms
over time.
Identify local socio - economic and environmental impacts
As mentioned before, DSM helps in reducing green house gas emissions, indirectly and thus, provides
indirect economic and environmental benefits. Employment opportunities are created and consumer
savings are reinvested in other services. Economic models such as the input / output model can be used
to estimate these impacts. Environmental impacts include accelerated removal of chlorofluorocarbons
(CFCs) from air conditioners and / or establishing a disposal facility for used fluorescent lamps.
Programme implementation plan
Having prepared the complete plan for implementing a particular DSM programme, effective
implementation of the same requires an active DSM cell, established within a power utility to manage
its implementation. According to electricity regulations formulated by various states and central
agencies of India, for effective execution of DSM programmes, formulation of DSM cell is a
mandatory. DSM cell established within the utility is responsible for the standard contracting and
bidding procedures, marketing and promotion of the developed DSM programme, scheduling the
activities to achieve yearly targets. The cell is also responsible for the preparation of budget and
expenditure plan. First DSM programme in India was launched in 1999 in which a DSM cell was set
up by the Ahmedabad Electricity Company (AEC) with responsibilities of developing load research
data, screening alternative energy efficiency measures and implementing some of those measures
through the involvement of ESCOs. DSM cells with almost similar roles and responsibilities were
established in states of Tamil Nadu, Rajasthan, Maharashtra, and Gujarat. Further, Maharashtra
Electricity Regulatory Commission (MERC) entered into a Memorandum of Understanding (MOU)
with the California Energy Commission (CEC), California Public Utilities Commission (CPUC) and
Lawrence Berkeley National Laboratory (LBNL) of the United States, to develop its own capacity and
also that of the distribution utilities in the areas of load research, integrated resource planning, demand
response, etc [21
Monitoring & Evaluation
Energy Measurement and Verification (EM&V) is defined as the process of measuring and verifying
both energy and cost savings produced as a result of the implementation of DSM measures [22].
Reduced funding by the government has made EM&V significant, especially in cases of funding by
the private sector through energy savings performance contracts. Effective EM&V measures the
performance of contractor and checks whether the designed DSM programme is generating the desired
level of savings or not. This process determines savings achieved by the government and the amount to
be paid to the contractor by it.
Demand-side management (DSM) has been traditionally seen as a means of reducing peak electricity
demand so that utilities can delay building further capacity. In fact, by reducing the overall load on an
electricity network, DSM has various beneficial effects, including mitigating electrical system
emergencies, reducing the number of blackouts and increasing system reliability. Possible benefits can
also include reducing dependency on expensive imports of fuel, reducing energy prices, and reducing
harmful emissions to the environment. Finally, DSM has a major role to play in deferring high
investments in generation, transmission and distribution networks. Thus DSM applied to electricity
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systems provides significant economic, reliability and environmental benefits. It is generally the
modification of consumer’s demand of electricity through various methods such as financial incentives
and consumer education. The main goal of DSM is usually to encourage the consumers to use less
energy during peak hours or to move the time of energy use to the off-peak hour’s viz. night.
There are various reasons behind for which the DSM must be promoted. Some of them are as
follows:
i) Cost reduction: many DSM and energy efficiency efforts have been introduced in the context of
integrated resource planning and aimed at reducing total costs of meeting energy demand.
ii) Environmental and social improvement: energy efficiency and DSM may be pursued to achieve
environmental and/or social goals by reducing energy use leading to reduced greenhouse gas
emissions.
iii) Reliability and network issues: ameliorating and/or averting problems in the electricity network
through reducing demand in ways which maintain system reliability in the immediate term and over
the longer term defer the need for network augmentation.
iv) Improved markets: short-term responses to electricity market conditions (“demand response”),
particularly by reducing load during periods of high market prices caused by reduced generation or
network capacity.
CONCEPTS OF DSM
The concept of demand-side management (DSM) has been introduced in the USA, more specifically in
the electricity industry, in the mid-eighties. It has been originally defined as the planning,
implementation and monitoring of a set of programmes and actions carried out by electric utilities to
influence energy demand in order to modify electric load curves in a way which is advantageous to the
utilities. Changes in load curves must decrease electric systems running costs – both production and
delivery costs -, and also allow for deferring or even avoiding some investments in supply-side
capacity expansion. Thus, DSM has been driven by strict economic reasons. Energy efficiency was a
privileged instrument for DSM implementation, as will be seen. Hence, in societal terms, this was a
typical win-win situation, as consumers would also benefit from cheaper energy services, as overall
efficiency would increase.
There are six main objectives defined in the context of DSM, known as: peak clipping, valley filling,
load shifting, flexible load curve, strategic conservation and strategic load growth.
In general, DSM implementation options may be classified into several different broad
categories: customer education, direct customer contact, trade ally co-operation, advertising and
promotion, alternative pricing, direct incentives.
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