UCL, Australia

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SERAG008

MKWS2

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1. Demand side management (DSM) involves different techniques with the objective of optimizing the performance of the energy system. The main techniques of DSM are energy efficiency, energy conservation and demand response. Discuss these techniques in relation to improving the efficiency of an energy system. 1. - Introduction The most of the goods can be stocked. However, electricity is more difficult to store. For that reason, electricity market is unique due to electricity in most of the cases has to be consumed at the moment that is been generated. Electric utilities have realized that it is important to implement an economic strategy to solve some issues related to the special nature of the electricity market (Gellings C, W, 1985). The present paper will address a strategy that seeks to solve issues in regards to control electricity demand from the consumer point of view. In this work the concept of Demand Side Management will be presented. In addition, the three elements that support this concept will be described. Finally, how these elements are related will be shown as well. 2. - Concept of Demand side Management In order to match electricity generation and demand, there are two concepts that address usually this aim: Supply-Side (SSM) and Demand-side (DSM) Management (Beggs 2002, chp. 3). While the focus of SSM is to solve problems or aspects from the utilities point of view (to build new power plants and electrical networks), DSM is focused to solve problems using endconsumers as the instrument to achieve the aim proposed. It could be inferred that solutions focused on Demand Side Management are faster and cheaper than solutions from the Supply Side Management solutions. The concept of Demand-Side Management was introduced at the beginning of the eighties by the Institute of Electric Power Research in the United States and it was defined as: the planning, implementation and monitoring of those utility activities designed to influence customer use of electricity in ways that will produce desire change in the utilitys load shape, i.e. changes in the pattern and magnitude of a utilitys load (Arteconi, Hewitt & Polanara 2012). Therefore to achieve the objective mentioned above, Demand Side Management has three elements that support or help to implement this type of programs. As Boshell and Veloza (2008) pointed out objectives of Demand Side Management are: to diminish the energy consumption through encouraging the use of high-efficiency equipment and building design with focus in energy

efficiency, and to reduce the consumption of energy by shifting the patterns of consumption of final consumers. Reviewing these two objectives it could be argued that these three elements are: energy efficiency, energy conservation and demand response (Gellings 2009). In the following sections these three concepts will be explained, and the symbiosis relation between them will be described as well (section 2.3) in order to show how programmes focused on Demand Side Management can effectively be addressed. 2.1. - Energy Efficiency Several animals have been used by mankind in order to achieve his well-being. However, horses highlight among all of them, due to the importance that they have had in the agriculture, transport and entertainment, especially in the eighteenth century. According to Langdon (cited in Fouquet 2011) technological improvements, such as horseshoes and harness, increased the efficiency (production) of these mammals by an 80% (Mokyr cited in Fouquet 2011). Similarly, from the point of view of energy, there is a concept that could be related to the improvements mentioned before. The Energy Efficiency concept addresses the permanent use of alternative device in order to achieve the same performance for a specific activity, but using lesser energy than the original device (Boshell & Veloza 2008; Bender, Davis & Lewis 2003). The benefits from energy efficiency programmes are related to electricity price reduction and construction delaying of new power plants. It should be noted that investment in energy efficiency programmes is usually a faster way to control and reduce consumption of electricity in the framework of Demand Side Management (Ibrahim, Zamzam & Ruddin 1993). Electrical drives and lighting are the first items that should be addressed in order to improve the electrical efficiency in processes or facilities. Electrical motors are massively used in different activities in our society, for example in pumps, fans, compressor, lifts, air-conditioned, etc. In addition, these devices are usually the most expensive items to run office-buildings (Beggs 2002, chp. 14). Therefore, due to their importance, it seems to be logical to address energy waste related to electrical motors, for instance: the direct relation that exists between motors running at low speed and their relation to poor energy efficiency and low power factor. Usually, a standard motor has an efficiency that varies between 55% and 95% at full capacity, where this variability depends of the size and speed of the motor (Beggs 2002, chp. 14). Indeed, it might be argued that the appropriate selection of the motor power for a specific process is the first energy efficiency strategy related to electrical motors. The use of variable speed drives (VSD) with the aim to control the motor speed is another powerful initiative directly linked with the energy efficiency concept.

Energy savings using this improvement are related to control the flow through VSD instead of using dampers or valves that will cause friction or energy losses due to the resistance imposed by pipe constraining. Furthermore, it is interesting what is argued by Saidur et al. (2012) in regards of VSD which have more reliability than other types of flow control. Certainly, integrating VSD into electrical motors not only will improve the energy efficiency of the process, but also it will save money associated with maintenance expenses in regards of mechanical stress reduction. It should be noted that the integration of variable speed drive into heating, ventilation, and air condition (HVAC) will diminish the consumption of energy mainly because of the control speed of the motor, hence the temperature control in a room or process. Lighting is another aspect that is associated with energy efficiency programmes. The development of this technology has helped to encourage the use of more efficiency lighting devices such as Light-Emitting Diode (LED) technologies. In addition, it is interesting the comparison that Beggs (2002, chp. 14) makes about the quantity of heat consumed by a building which is higher than the energy consumed by lighting, however the energy costs of lighting is higher than the heating energy costs. Despite the fact that some authors (Bender et al. 2003; Boshell & Veloza 2008) suggest different activities in regards to improve the energy efficiency of different types of process, most of these activities are directly or indirectly related to the devices mentioned before. Nonetheless, the most thrust aspect, in relation to the concept of energy efficiency, is the awareness of energy consumption and savings that would be able to achieve through energy efficiency initiatives. There is plenty of evidence about the effectiveness and profitability of energy efficiency programmes (Bender & Cheri 2003, p10; Ibrahim, Zamzam & Ruddin 1993; Baskette and Brief 2010). However, there are still barriers in how to implement and address energy efficiency initiatives. As it was mentioned in the last paragraph education and information (awareness) are key aspects in order to achieve aims with these types of programmes. According to Ibrahim, Zamzam and Ruddin (1993), utilities have an important role in promoting and encouraging energy efficiency programmes. These authors found that some of the barriers related to the success of these programmes are linked to: the lack of awareness about technologies, priority of projects in the same company, lack of human resources with the ability to evaluate the overall scenario including savings related to energy efficiency strategies. In addition to these barriers, Bender et al. (2003) have argued that programs related to energy efficiency programs have two main risks that are dangerous in order to perceive contributions to the electric system reliability: changes due to efficiency are hard to predict and quantify, and controlling efficiency energy programmes in real time could be hard to achieve.

In order to overcome some of the barriers stated in this section, Bender et al. (2003) conclude from their work two statements that with respect of present paper present more relevance than the others. Firstly consumers have to understand the concept and the market of energy efficiency programmes. Secondly, in terms of the programme implementation, the strategy used has to be related to sector where is implemented. For example, it will be different the strategy and the result of an energy efficiency program in an office because it will be addressed lighting or air condition replacement. On the other hand, in the industry such as mining the focus will be in electrical drives such as replacement of electrical motor or the integration of VSD into the process. 2.2. - Energy Conservation Energy conservation and energy efficiency are two concepts that it could be suggested that are similar. Actually according to King and Delury (2005), the concept of energy conservation during the eighties and nineties evolved to energy efficiency. However those concepts are totally different. In a broad sense, while the concept of energy efficiency seeks to perform a specific task consuming less energy than the other alternative; energy conservation seeks to keep the energy, implicating not to perform the specific task. Another important difference with respect of energy efficiency is that an energy conservation strategy could be implemented in a short period of time. Therefore, the energy conservation concept implies use less of a resource that can be done for a short period of time. This objective is achieved changing people behaviour in their lifestyle (Boshell & Veloza 2008; Bender, Davis, & Lewis 2003). For example energy conservation initiatives in the Demand Side Management framework are: Lowering air conditioned settings from 18 to 15 C in winter. Using washing machines and dishwashers at full load. Using electrical motors at full capacity. In summer season, avoid the use of air conditioned. Instead try to use light clothing.

According to the literature, there is a direct relation between energy conservation and demand response, specifically dynamic pricing, reliability and feedback programs. This relation will be addressed in the following section. 2.3. - Demand Response Demand response is the third element of Demand Side Management, which evolved in the United States from the concept of load management (King and Delury 2005). Demand response seeks temporarily to reduce the customer demand (kW) as an answer to the electricity market conditions, for instance: transmission or distribution congestion, elevated power prices or system emergencies (Baskette & Brief 2010).

Demand respond could be easily confused with energy conservation, but the thrust difference is related to the timing and the extension of the reduction. While energy conservation is permanent in time, demand response implies shifting the demanded load to a new time period. Usually, this shift is motivated by electricity prices at different hours of the day. Hence, the consumption or use of washing machines, dishwashers or other appliance is mostly changed at night. It should be noted that the demand response implementation could not necessarily reduce the amount of energy consumed. For example: there are appliances, such as refrigerator, that are permanently used all through the day. In those cases storage systems are utilized in order to save energy when the price of electricity informed by the market is economically convenient (Arteconi, Hewitt & Polanara 2012). However, the shifted load could consume more energy than the original state of consumption. The reason is linked to the efficiency of the storage system utilized in order to store energy. In the original case, electricity is only consumed by one appliance; but in the new case, where the storage system is used, electricity is consumed by two devices: the appliance and the storage system. For that reason demand response is not considered as energy conservation strategy because the aim of it is to shift the demand curve (Baskette & Brief 2010; Strbac 2008). According to King and Delury (2005), demand response in the United States has been massively influenced by peak capacity and system reliability. Nonetheless, Bender et al. (2003) conclude three strategies in order to success with demand response implementation: to achieve the appropriate price to encourage consumers, consumers must respond quickly in order to control dynamically demand and finally they must adopt appropriate technologies in order to help to control demand. Strbac (2008) reviews some initiatives called by him demand side techniques. However, according to the meaning addresses in the present paper, those techniques are closed to the significance of demand respond. Those techniques are focused to shift or flatten the demand pattern. Despite the fact that those have different names, most of them have the idea to motivate consumers through energy price in order to achieve the new pattern. Some of the techniques presented in that work are: direct load control, industrial peak control, dynamic pricing and reliability program. In addition, Strbac mentioned that frequency measurement is other technique that could be use to shift the load curve. In a broad sense, the principle is correct. However, this could be confusing due to control electric frequency is proper from the utilities and it has indirect relation to the consumers (Beggs 2002). The successful implementation of demand response programs have to be complemented by the two other concepts of demand side management.

According to the data collected by King and Delury (2005) suggest that there is a relation between demand respond and energy conservation concepts. This study shows that when dynamic pricing program is applied as demand respond strategy, energy conservation was a 4%. Secondly when a reliability program was implemented a 0,2% was achieved. Finally when a feedback program was implemented an 11% of conservation was achieved. Hence they conclude that the relation between demand response programs (especially feedback programs) and energy conservation is strong. However, they highly that using efficient and conservation energy as a tool to demand control will be difficult and harder, due to they cannot be controlled dynamically. Demand response can be used to control dynamically, however not always is used as reduction of energy. Finally, another interesting observation between the concept of dynamic pricing (demand response) and the concept of energy efficiency is made by Bender et al. (2003). The implementation of dynamic pricing program should encourage the awareness about consumption and energy efficient in order to reduce peak loads that match with a high electricity price. 3. - Conclusion Demand Side Management is used to improve the energy system performance. This strategy usually is cheaper and faster than the Supply Side Management. However, in order to achieve its objective, the relation between the three elements of demand side management (energy efficiency, energy conservation and demand response) has to be closed. Each of the elements of DSM has different activities and initiatives that would change or shift the demand curve. In addition, consumers awareness is a key factor in the implementation of any DSM programme. Demand Side Management is an excellent economical tool for controlling the demand of electricity. However, in order to overcome barriers associated with DSM the integration in these programs of customer and utilities is crucial. Revision Chapter 3: There are two types solution or techniques in terms of management of the electrical energy: supply-side measure and demand-side measure. The supply side measure as the name shows are solution from the utility company (on the supply side). On the other hand the concept of demand-side measure are solution related to consumer (final). It should be noted that demand side measures are related to the final customer.

Electricity Market The electricity market is special due to the unique nature of this good. The electricity cannot be stored, so for that is a unique market. Gellings C, W, 1985 Electric utilities have learned that importance of developing a flexible and diverse management strategy that will help them succeed in an increasingly competitive and uncertain market.

Newborough and Augood. In uk the peak demand and cost of supplying electricity is greatest during winter. However in several other countries more complex tariff exist (7), which assign costs to the maximum demand and/or time of day/year. Unfortunately the required metering technology is expensive...

DSM CONCEPT Baskette and Brief 2010 While research has shown that there is a clear link between EE and DR, the two offering are rarely promoted to commercial, institutional, and industrial customer as an integrated product or service. Arteconi, Hewitt, Polanara 2012 the term demand-side management (DSM) was coined in the early 1980s by EPRI (Electric Power research Institute) and it is defined as : the planning, implementation and monitoring of those utility activities designed to influence customer use of electricity in ways that will produce desire change in the utilitys load shape, i.e. changes in the pattern and magnitude of a utilitys load. All programs intended to influence customers use of energy are considered demand-side management and can be addressed to reduce customer demand at peak times, reduce energy consumption seasonally or yearly, change the timing of end-use consumption from high-cost periods to low-cost periods and increase consumption during off-peak periods. A thermal energy storage (TES) system is a device that can store thermal energy by cooling, heating, melting, solidifying or vaporizing a material. It is called sensible storage when the material temperature rises or falls and latent heat storage when a phase change accurs. Tes temporantly retains energy for a later use and it can be applied in different applications. In a DSM program, a TES can be used for electric load management in buildings by shifting electrical heating and cooling demands from peak periods to off-periods. in fact, during of peak times, heating or cooling can be generated by electricity, stored in the thermal energy device an then used during peak-hours in order to flatten the customers load profile. A

similar application has many advantages both for customers than can have a more efficient system and save money if they take advantage of different electricity prices during peak and off peak hours and for utilities that spread the demand over the whole day. This scheme acquires greater importance in a scenario where peak electric demand is increasing and/or where renewable energies, with non-dispatchable characteristics e.g. wind, enlarge their generation share. Demand-side management is an instrument focused on changing the load profile to optimize the entire power system from generation to delivery to end use. The EU implementation of renewable energy its based on its 20-20-20 commitments, i.e. 20% renewables by 2020. In 2009, 61% of all new electricity generation capacity came from renewable energy in final consumption has increased above 10%. The prediction for renewable energy implementation in the EU show that over 50% of the power generated will be from non-dispatchable (is defined as an energy resource that is generated in accordance with, for example, the weather and not as it is required). In the European Union, building account for 40% of total energy consumption with space heating and hot water taking significant portions. Thus there are relatively large heating, cooling and hot water demands that can be controlled, adapted and/or enhanced to performs a demand side management function Since the introduction of the concept of demand side managemenet, several programs have been implemented worldwide. Conclusions: demand-side management is a method to match electricity generation and demand. DSM programs can be aimed at peak clipping, valley filling, load shifting and strategic conservation. Among means for DSM, TES can be used and it is appropriate for load shifting. Countries were TES has attracted much interest are mainly the US and in Europe. At presents TES products do not contribute significantly to international trade, only ice storage has a good market in the USA. Interest on TES system for DSM management is growing due to the present scenario of electricity generation where renewable energies cover an important role and electric peak demand increases. Of course DSM programs have positive impacts both on customers and utilities, producing energy savings and reducing cycling costs for power plants (Malik 2001, Malik and Cory 1999, Malik 1999), but they need to induce behavioural changes at the consumer end in order to become durable (Breukers, Heiskanen, Brohmann et al 2010)

Chao 2010 These initiatives will be successful if the actors who must implement them and those who have the opportunity to participate in them are both able to perceive the benefits from participation and this will be strongly influenced by a price responsive demand which is deemed fundamental for the demand-side management concept. Krajacic, Duic, Tsikalakis, Zoulias, Caralis, Panteri et al 2011 Different mechanism to incentive study evaluating the successful introduction of feed in tariff schemes to promote the use of energy storage Strbac 2008 DSM has not yet fully integrated the operation of electricity markets and the challenges are mainly due to lack of metering and communication infrastructure, lack of information and lack of incentives. (gellings CW 2009) Demand side management results in the implementation of four types of components 1)energy efficiency end-use devices 2) additional equipment systems and controls enabling load shaping 3) standard control systems to turn end-use devices on/off as required 4) communication systems between the end-user Auffhammer, Blumstein & Fowlie 2007 since 1970 utilities in the US have been implementing DSM programmes designed to reduce residential and commercial electricity demand through information dissemination programs, subsidies, free installation of more efficient technologies, and other conservation activities. Conclusion: Dsm programmes have the potential to play an important role in mitigating the environmental impacts associated with meeting increasing demand for electricity end-uses. Past programs evaluations and utility-reported data have indicated that these programs are highly cost effective. In some respects, Loughran and Kulik (2004) offer empirical evidence that is broadly consistent with the earlier literature. They find that DSM expenditures during 1990s succeeded in increasing the electricity efficiency of the US economy. Loughran and Kulik (2004) Utilities who spend more on DSM programs report significantly larger percentage saving on average. Ibrahim, Zamzam & Ruddin 1993 energy management implies conservation by customers in their use of energy resources and the adoption of efficient technologies. Energy efficiency measures are well established and the promotion of efficient technologies has continuously been a top priority in energy policy options. Whether efficient technology is adopted, and how it is used by customers

depend on their own needs, perceptions of benefits, attitudes and resources. Therefore, DSM activities must be customers focussed. DSM is a utility financed programme for total energy savings approach. DSM is a set of tools that the power utility can be used to influence the timing and the amount of electricity use in order to operate the power system in the least cost manner by altering the system load shape through peak clipping, valley filling, load shifting, strategic load growth and flexible load shape. DSM seeks to: Minimise energy consumed for a given end-use. Reduce maximum demand for the KWH consumed Promote the use of electricity resulting in lower fossil fuel consumption and therefore lower greenhouse gas emissions.

DSM comprises three major components; energy conservation, promoting ecowatts, and load management techniques such time -of-day tariffs and load control options as well as programmes specially designed to build load in both peak and off peak periods. DSM projects lighting, ceiling insulation, appliance design competition to produce more efficient rise cookers and ceiling fans, producing brouchers and guidebook on energy efficiency. Bender, davis and lewis 2003 supply side solution that maintain large amounts of capacity to meet small variations in demand levels are almost inherently more expensive. Energy efficiency and conservation fall under the heading of demand side management (DSM). Dsm programs are designed to achieve to objectives: reduce overall energy consumption by promoting high efficiency equipment building design, and achieve load reductions by changing the patterns of energy use, primarily at times of peak demand. California continues (2002) to be nations more efficient state in terms of per capita electricity. The summer of 2000 was marked by increases in the wholesale price of power and isolated supply short falls. By the winter constrained electricity supplies forced rolling blackouts throughout the state. These circumstances led to renewed interest in demand side programs as a resource that could help alleviate electric system adequacy problems. The primary end-use targets for the programs are: 1) lighting and appliances 2) heating, ventilation and air conditioning systems 3) motors.

The action plan describes 6 specific actions to decrease per capita electricity use through efficiency and conservation: Improve new and remodelled building efficiency by 5% Improve air conditioning efficiency by 10% above federally mandated standards. Make energy new state building a model of energy efficiency. Create customer incentives for aggressive energy demand reduction Provide utilities with demand response and energy efficiency investment rewards comparable with the return on investment in new power and transmission projects. Increase local government conservation and energy efficiency programs.

Strbac 2008 (UK) 1) key features of the present power system and the opportunities for demand side management (DSM). Installed generation capacity must be able to meet maximum (peak) demand. Historically, a capacity of around 20% was considered to be sufficient to provide adequate generation security. The average utilisation of the generation capacity is below 55%. This relatively low average plant utilisation opens up significantly scope for DSM as shifting load from peak to off-peak periods would reduce the need for generation capacity and increase the utilisation of generating plant and hence increase the efficiency of generation investment. Shifting load from peak to off-peak periods generation fuel costs could be reduced and the utilisation of investment improved. In UK minimum demand occurs in summers nights and is about 30% of the winter peak. Regular use of load control requires the ability of controlled deviances (appliances) to reschedule operation or the ability to continue operating during the interruptions by drawing on some form of storage. This storage can take the form of thermal, chemical or mechanical energy or intermediate products. DSM therefore redistributes the load but does not necessarily reduce the total energy consumed by the device. Benefits of DSM: 1) Reducing the generation margin of DSM. The total capacity of installed generation in the system must be larger than the system maximum demand to ensure the security in the face of uncertainty. In UK, deficits larger than 5000 MW will be very rare. Household would be willing to forgo consumption relatively infrequently. The amount of load that it is needed is not massive in comparison to the size of the system. The value of DSM in this circumstance,

determined by the cost of alternative provision of capacity which in this is generation would be XXX for a modern gas fired type plant. However, the value of DSM could increase considerably above the cost of generation due to difficulties and delays in the planning process associated with building new power stations. 2) Improving transmission grid investment and operation efficiency through DSM. Power system security is traditionally achieved through preventive measures the system is operated 24 h a day, 365 day a year, less efficiently in order to be able to cope with outages that occur infrequently. The operation is achieved through the huge expense of increased operating costs and low utilisation of generation and network capacity. An alternative approach would be to operate the system at lower operating costs and with reduced network and generation capacity. This could be achieved by curtailing some loads at appropriate locations. Clearly, this would allow generation to operate at lower cost (as congestion is reduced). Some consumer would find it financially attractive to curtail or postpone their load to help correct an emergency situation. 3) improving distribution network investment efficiency through DSM. DSM could be use to manage network constraints at the distribution level. DSM could bring several benefits: Deferring new network investment Increasing the amount of distributed generation that can be connected to the existing distribution network infrastructure. Relieving voltage-constrained power transfer power problem. Relieving congestion in distribution substations Simplifying outage management and enhancing the quality and security of supply to critical-load customers. Providing corresponding carbon reduction.

Increased loading of existing distribution substations in urban areas, driven by a significant increase in air-conditioning load. There is an opportunity for the application of ice-cooling facilities aimed at increasing the short-term substation transformer rating by using the electricity to produce ice during the night that can be used to cool the transformer during the daily peak conditions. Dsm in managing demand-supply balance in systems with intermittent renewables: uk, wind power, both on-and offshore, is presently the principal commercially available and scalable renewable energy technology. Thermal units, however, operate less efficiently when part-loaded, with an efficiency loss of 10-20%. Since some of the generators will run part-loaded to

provide reserve, some other units will need to be brought onto the system to supply energy that was originally allocated to the plant that is now running at reduced output. This usually means that plant with higher marginal costs will need to run. The significant amount of wind power in the system will cause an increase in fuel costs associated with balancing the system in real time. These cost are effectively fuel cost associated with holding and exercising the reserve necessary to manage fluctuations in demand and generation. The additional value created by DSM is a result of reduced fuel consumption associated with balancing. x) the role of distributed power system: CHP+ renewable generation would be driven by the prospect of significantly increasing the efficiency of the overall energy supply system. This would be primarily achieved by making use of rejected heat from medium and/or small thermal based electricity generation. Chp this dual purpose based is very difficult to realise with units of very large size. Generating electricity from large plant is accompanied by the production of a very significant amount of waste heat that is difficult to make use locally, and transporting it over long distance is inefficient. Balancing electricity demand and supply is a distributed supply system dominated by different forms of renewable generation, including various forms of CHP, will be challenging.

Gellings C, W, 1985 Demand side management (DSM) is the planning and the implementation of those electric utility activities designed to influence customer uses of electricity in ways that will produce desired changes in the utilitys load shape. Boshell and Veloza 2008 The objective of Demand side management are two: reduce overall energy consumption by promoting high-efficiency equipment and building design and achieve load reductions by changing the patterns of energy use by end consumers primarily at times of peak demand (California energy commission, Energy Efficiency and Conservation: Trends and Policy Issues, California, USA, Tech. Repor., May 2003 http://www.energy.ca.gov/reports/2003-05-29_100-03-008F.PDF). According to Boshell and Veloza (2008) states that the experience establishes that the program of DSM is more effective when the three concepts are involved. Therefore the programs are complement in order to support between. For example: when a DR initiates is established, and it focused only in to secure the stability of the system, which promote load shifting to periods of time when electricity tariff are lower. However, it could be increased the consumption of energy (average) due to the fact lack of regulation.

Newborough and Augood. The difficulty of storing electricity efficiently and cheaply, is addressed by the DSM which smooth the demand profiles of individual dwelling. Gellings C, W, 1985 demand side management: concept of actively influencing the demand for electricity. DSM is the planning, implementation, and monitoring of those activities designed to influence customer use of electricity in ways that will produce desired changes in the utilitys load shape, i.e., changes in the time pattern and magnitude of a utilitys load. Utility programs falling under the umbrella of DSM include: load management, new uses, strategic conservation, electrification, customer generation, and adjustments in market share. Gellings C, W, 1985 DSM includes only those activities that involve a deliberate intervention by the utility in the marketplace so as to alter the consumers demand. Under this definition, customer purchases of energy efficient appliances as a reaction to the perceived need for conservation would not be classified as DSM. Six broad categories of load-shape objectives can be distinguished: peak clipping, valley filling, load shifting, strategic conservation, strategic conservation, strategic load growth, and flexible load shape. Peak clipping: is the reduction of the system peak load through direct load control. Another example of peak clipping is the use of interruptible/curtailable rates for industrial and commercial customers. Valley filling. As the name same this technique consists in fill the gap related to lack of load. Usually is accompanied by adding new thermal energy storage in place of loads served by fossil fuels. Load shifting, is the classical form of load management. This involves shifting the load in on peak periods to off peak periods. Popular applications include use of storage water heaters, storage space heating, coolness storage, and customer load shifts. The load shifts from storage devices involves displacing what would have been conventional appliances served by electricity. Strategic conservation. Is the load-shape change that results from utilitystimulated programs directed at end-use consumption

Energy Efficient Beggs C 2002 chp 14 Pump, fans, compressors, escalators and lifts are all powered by motors of one type or another. Furthermore, electric motors are often the most costly items of plant to run office buildings. The lower speed, the lower efficiency and the lower the power factor. Depending of size and speed, a typical standard motor may have a full load efficiency between 55% and 95%.

If the load fluctuates and rarely achieves 75% full load, then both the efficiency and the power factor of the motor will be adversely affected. Therefore, if motors are oversized, the need for power factor correction becomes greater. The constriction itself increases the system resistance and results in increased energy loss. This situation is highly undesirable and is one of the main reasons why the energy consumption associated with fans and pumps is so high in so many buildings. An alternative approach to the use of valves and dampers is to control the flow rate by reducing the speed of the fan or pump motor. VSD Saidur, R, Mekhilef, S, Ali, MB, Safari, A, Mohammed HA 2012 VSDs are realiable and cost effective means to control the speed of electrical motors. Installing VSDs on electrical motor applications improves the efficiency of the systems and saves a huge amount of energy. They require little maintenance, provide the most energy efficicient capacity control, have the lowest starting current of any starter type, and reduce thermal and mechanical stresses on motors and belts. Applying VSDs to the HVAC systems and compressed air provide excellent opportunities to reduce the energy consumptions. VSDs are an option to match the required loads thus savings energy and improve the economical features of motors. Lighting energy consumption. Although in many buildings the energy consumed by the heating system is often greater than that consumed by lighting, the energy costs associated with lighting are often considerably greater than those associated with the heating. Baskette and Brief 2010 Energy efficiency and demand response fall under the same umbrella. Energy Efficiency is the sustained reduction in energy consumption (kWh) achieved either by replacing older products or equipment with more efficient ones, or making operational changes to improve specific system or equipment scheduling efficiency. Generally, EE can help offset or defer the need of new baseload generation, while DR can help to avoid the need for new peaking power plants or transmission and distribution infrastructure. In many cases, the funding sources for EE and DM are separated. As a result, EE and DM departments with distinct goals and budgets, thus creating a barrier to integrated efforts between the two groups. Ibrahim, Zamzam & Ruddin 1993 the main thrust of Malaysian energy policy is to supply adequate energy efficiency and on a least-cost basis to energy users. Although energy efficiency programs began 1980, the Malaysian public is still unaware of its importance. What is required is an effective public campaign and implementation programmes to educate the public on what and, most importantly how to achieve energy efficiency.

It was recognized that power utilities, together with development financial institutions, were the most appropriate organizations to promote energy efficiency in Malaysia. Experiences in many countries clearly show that investment in improving the efficiency of electricity services is, at the margin, the most cost-effective way of expanding electricity service in order to advance social and economic development as well as easing pressures on global environment. Benefits of promoting energy efficiency: efficiency will allow the utility to operate at the lowest possible cost of production (tariffs stable and new power plants (construction) will be delayed); through energy efficiency the power utility can help reduce consumers bills; the risks of under building or over building new plants will be reduced. Efficiency investments can be made in smaller amounts and more quickly adjusted to meet changes in demand. energy efficiency and conservation programs can play major roles in increasing the reliability of the current electricity system and reducing the costs of meeting peak demand during periods of high temperatures and/or high prices. Example of energy efficiency: 1) replacing incandescent light bulls with compact fluorescent bulls, which deliver equivalent light using 70% less electricity. Installing new variable speed chillers that deliver cooling to building using 40% less energy than typical chillers. 3) identifying and repairing leaks in ductwork, which can improve heating and cooling efficiencies by as much as 25%. Energy efficiency is a term that typically refers to the permanent installation of energy efficiency technologies or the elimination of losses in existing system. The aim of energy efficiency is to maintain a comparable level of service, but reduce energy usage. Understanding how the resources are actually used in energy consuming activities know as end uses is crucial to any discussion on energy efficiency. (P.10) Californias efficiency initiatives have made substantial contribution to slowing the growth of electricity and natural gas use over the past 26 years. As shown in FIG 8, the cumulative effects of all Californias efficiency programmes and standards are more than 10000 MW and 35000 GW in savings through 2001. This saving is equivalent to the output of thirty-three 300 MW power plant. Since energy efficiency building and appliance regulation went into effect in 1978, the energy commission estimates that Californians have reduced their utility bills by at least $20 billion. Energy efficiency has two major risk characteristics that are perceived to compromise its contributions to electric system reliability: 1) the impacts of efficiency are neither readily predictable nor easily quantifiable. 2) energy savings measures cannot be called upon as resources in real time.

Some promising approaches that would permit programs synergies between energy efficiency, demand response, and distributed generation include: 1) increasing the focus in peak load reduction in energy efficiency programs 2) coordinated marketing, information, education and implementation 3)introduction of new technology opportunities 4) integration of efficiency with dynamic pricing and metering. The first two approaches contributed to the successful reduction of both energy use and peak load in 2001. Energy efficiency programs will need to: Help consumers understand new rates structures and how energy efficiency and prices responsiveness strategies could benefit them. Identify the most viable demand strategies for different market segments. Support testing and promoting of technologies to allow end users to easily respond to high energy prices. Help consumers protect themself from surprise bill risks.

Boshell and Veloza 2008. Term that refers to the permanent installation of energy efficient technologies or the elimination of energy losses in existing systems. The aim of energy efficiency is to maintain a comparable level of service, but reduce energy usage. Examples of energy efficiency are: Replacing incandescent light bulbs with compact fluorescent bulbs. The use of automatic thermostats. Domotics (home automation devices) Installing new variable speed chillers that deliver cooling to building using less energy than typical chillers. Identifying and repairing leaks in compressed air networks.

Energy Conservation Patrick et al 2007 Chapter 11 the main thrust of energy management is to conserve energy which in turn saves money. To have effective energy management, a person must have energy awareness and the desire to save both energy and money. Remember that properly maintained and managed building, on the average, will consume 20% to 30% less energy than a poorly maintained and managed one. Energy conservation is not energy management. Energy conservation is doing what is easy and economical in the short term. Energy management, in contrast, is the long-term commitment of one or more individuals.

Preventive maintenance performed on equipment can make a significant contribution to energy savings. Preventive maintenance (PM) procedures are used to take corrective action on equipment before breakdown occurs.

Bender, Cheri 2003 (California). Examples of conservation: 1) raising a thermostat from 75 to 80 for air conditioning on a hot summer day. 2) waiting until dishwasher is full to run. 3) tuning lights off when the room is not in used. Energy conservation typically involves using less of a resource, usually by making a behavioural choice or change. The change may last for a short duration or may be incorporated into a habit or lifestyle. Conclusion: Efficiency and conservation have enormous benefits: they reduce electric and natural gas load growth; contribute to flexibility and adequacy of the electric and natural gas system; offer consumers control over their energy use. King and Delury 2005 During 80s and 90s conservation evolved into the concept of efficiency. Conservation effect of Dynamic pricing. Definition: includes pricing that varies by time of day to reflect the higher cost of generating electricity during hours of peak usage. There is a reduction in the consumption mainly because 3 factors: Higher peak or critical peak prices induce load reductions during peak hours, not all of which is shifted to other times Dynamic pricing programs cause participants to have a higher awareness of how they use energy, in turn, results in lower consumption. Usually increase the amount of usage information, or feedback, received by the consumer also lowering consumption.

Conservation effects of Reliability programs. Definition: reliability programs are designed to be available during the top 100 peak hours of the year. They are dispatched by utilities or grid operators to avoid or meet system emergencies. Their focus is reduction in demand, not energy. The data suggests an overall conservation effect of approximately 0,16%. Conservation effects of customer feedback programs. The process of giving feedback on consumption motivates consumers to save energy through reduced waste. The two types of feedback to electricity users: Direct feedback in the home (devices and instrument) Indirect feedback via billing and periodic usage reports. The literature shows that feedback has a significant role to play in raising energy

awareness and in bringing about reduced consumption on the other 10% (consists of data processed by the utility, then sent to costumers). Conservation effects of frequent feedback. In 14 utility and government programs carried out in the United States, residential customers provided with daily feedback on electricity usage reduced total consumption by an average of 11 percent.

Darby, 2001 it appears that direct feedback, alone or in combination with other factors, is the most promising single type of strategy. Boshell and Veloza 2008. Energy conservation involves using less of a resource, usually by making a behavioural choice or change. The change may last for a short period or may be incorporated into an habit or lifestyle. Examples of energy conservation and energy consumers behaviour are: Lowering thermostat temperature from 18 C to 15 for heating systems. Waiting until the clothes washing machine is full to run. Use of lights clothes during summer season.

Demand Response Baskette and Brief 2010 DR is the temporary reduction of customer demand (kW) in response to electric system conditions such as high system load, transmission or distribution congestion, elevated power prices, or system emergencies. Participation in DR has been found to often lead to greater adoption of EE because DR can increase a customers awareness of its energy usage. Ibrahim, Zamzam & Ruddin 1993 there is an international acceptance that it is proper and necessary to influence the timing and magnitude of their customer use of electricity to ensure a more economic operation of the entire power system. the lowest cost of the new source of electricity is found on the demand-side when both environmental costs and welfare needs are taken into account. There are a number of terms used to describe this efficiency: energy conservation, energy savings, energy efficiency, ened-use efficiency and demand side management. King and Delury 2005 load management evolved into demand response. In usa demand response have grown rapidly driven by:

Peak capacity shortage Reliability issues Demand response as price-modulating tool in competitive market.

Although the primary intended effect of demand response programs is to reduce electricity use during time of peak load, the vast majority of demand response programs also yields a small effect of conservation: Broad definition of demand response: dynamic pricing programs, reliability programs, and information feedback programs: Dynamic pricing program 4% conservation Reliability program 0,2 % conservation Feedback program 11% conservation

The data analysed shows a very strong correlation among three factors: dynamic pricing, automated controls, and feedback programs or devices. Any combination of these three elements produces a greater conservation effect than a single factor alone. With the combination of these 3 elements producing the greatest effect. Conclusion: demand response programs usually result in a small reduction in total electricity consumption in addition to a much larger reduction in electricity use during peak hours. Efficiency and conservation and demand response are two similar but different tool in demand side management tool box. Each has its own attributes and each complement the other. Efficient and conservation can result in load reduction on peak, but likely cannot be dynamically controlled. Demand response offers dynamic control and dispatch, while likely not resulting in increased usage, may not always result in a large conservation effect. Strbac (2008) load reduction periods will be followed by load recovery. In some cases the amount of load recovered may exceed the amount of load curtailed because of losses in the storage or energy conversion process. It should be noted that DSM and storage are inherently linked and should not be considered in isolation. Evolution of feedback technology already in progress in the form of phasor measurement units, which take time stamped measurement of the key electrical quantities in magnitude and form. Brief review of DSM technique: a) night time heating with load switching. Given that base-load operates with load marginal costs, night-time electricity heating has been success fully applied in a number of countries night time storage heaters.

B) Direct load control: domestic direct-load control programmes apply to appliances that can be turned off or cycled for relatively short periods of time. The most common applications are domestic air-conditioners, water heaters and swimming pool pumps. Customers who take part in direct load control receive compensation through reduced electricity bills. Load limiters: limit the power that can be taken by individual consumers. The level at which the limit is set, can be adjusted. c) commercial/industrial programmes. Peak load management and industrial classes of customers . Particularly popular are load-interruptible programmes for the provision of reserve services and for enhancing system reliability. d) frequency regulation trigger load reduction .... e) time of use pricing f) demand bidding. Are available when that customer is willing to reduce or forgo their consumption of electricity at a certain predetermined price. Smart metring and applicances. Boshell and Veloza 2008. It is related to electricity market and price signals, for instance in the form of load management or load shifting. Here a customer reduces load in response to a signal from a service provider. These are different from conservation in that the activity is not necessarily reduced, but rather shifted to another time period. Dynamic pricing is anew metered load management approach that uses price signals to induce customers to reduce energy use at specific times of the day, typically when energy is the most expensive to procure. Bender, Cheri 2003 (California) Dsm also can take the form of load management or load shifting. Here a customer reduces load in response to an emergency signal from a service provider or grid operator. These are different form conservation in that the activity is not necessarily reduced, but rather shifted to another time periods. Dynamic pricing when the electricity is more expensive to procure. The most promising technology innovations for both energy efficiency and demand response involve pricing and metering. Dynamic pricing strategies should increase interest in energy efficiency to reduce end-use peak loads that are both coincident with high cost periods and harder to shift, like space cooling and refrigeration. For end-use loads that are easier to shift, like laundry, dishwashers, and pool pumps, however, energy efficiency may be less economically valuable to the consumer when usage could be shifted to cheaper off-peak prices than in the current rate structure. Successful load shifting via dynamic pricing depends upon: 1) getting the price right in the first place 2) consumers willingness to adopt dynamic rates 3) their

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