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Load control:
Energy management control systems (EMCSs) can be used to switch
electrical equipment on or off for load leveling purposes. Some
EMCSs enable direct off-site control (by the utility) of user
equipment. Typically applied to heating, cooling, ventilation, and
lighting loads, EMCSs can also be used to invoke on-site generators,
thereby reducing peak demand for grid electricity. Energy storage
devices located on the customer's side of the meter can be used to
shift the timing of energy consumption.
Issues Involving the Implementation
Demand Side Management Solutions
Include:
• Public Benefits Programs,
– Prior to electricity industry restructuring, utilities were responsible
for a variety of programs (including DSM) that meet social
objectives. Under restructuring, funding for these programs is
typically through a small surcharge ("wires charge" or "system
benefits charge") on utility bills.
• Rate Schedules
– Utilities can structure their rates to encourage customers to
modify their pattern of energy use.
• Time-of-Use Rates,
– Time-of-use rates involve charging higher prices for peak
electricity as a way to shift demand to off-peak periods.
Interruptible rates offer discounts in exchange for a user
commitment to reduce demand when requested by the utility.
Issues Involving the Implementation
Demand Side Management Solutions
Include:
• Power Factor Charges
– Power factor charges can be implemented to discourage
commercial and industrial utility customers from partially
loading their electrical equipment, as this requires the utility to
generate extra current to cover the resulting system losses.
• Real-Time-Pricing
– Real-time pricing is where the electricity price varies
continuously (or hour by hour) based on the utility's load and
the different types of power plants that have to be operated to
satisfy that demand.
How to control Price Volatility and
Supply Shortages
• These can be controlled either by Supply-Side Management
by having sufficient supply availability to meet with rising
demand or by Demand-Side Management (DSM) by
curtailing electricity demand during supply shortages.