Why is Demand Side Management important?
What are the benefits of Demand Side Management?
There are several advantages offered by Demand Side Management, including:
- Firstly, it helps reduce market prices for electricity by freeing the utility from the expense of building backup (and sometimes fossil-fueled) plants that are brought online to cope with peak demand
- It reduces the costs of managing the electricity grid
- By smoothing out demand, it results in a more efficient and dependable electricity network.
- Customers can save on their energy bills as they shift demand to off-peak hours, particularly if they are large businesses or industries
- The environment suffers less, since renewable energy is more friendly to nature
- Network operators can ensure network reliability, because DSM programs give them the tools to schedule usage and therefore avoid the risk of unexpected surges in demand that can cause power outages
- The community overall benefits, as it is provided with more reliable electricity without the need for building new power plants
- Utilities save money, because they avoid having to build new generating capacity to meet peak demand loads, and can avoid the expense of buying electricity on the open market in the event of a sudden spike in demand.
Demand Side Management vs Demand Response: what are the differences?
How to take part in a Demand Side Management program?
For large energy users, the first step on the customer side of any Demand Side Management program system such as a Demand Response is to carry out an in-depth analysis of on-site consumption.
The next step is to install metering technology to enable the user to interact directly with the utility. After that, the user is ready to implement its energy management plan in response to communications with the utility.