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Dr. B. B. Ale
Department of Mechanical
Pulchowk Campus, Institute of
Tribhuvan University
November 2009
Energy conservation and
demand side management
• Energy conservation:
– thermodynamic of energy conservation,
– energy conservation through controls,
– energy auditing,
– process heat and steam management,
– waste heat recovery,
– electrical energy conservation in
buildings and industries,
– economics of energy conservation
Energy conservation
• Thermodynamic of energy conservation – 1st law of thermodynamics
• Energy conservation through controls – reducing driving speed,
telecommuting and staggering work hours, better insulation for homes
and commercial buildings, modifying the consumer behavior and avoiding
unnecessary energy consumption, awareness programme, population
control, low-cost mass transportation system,
• Energy auditing – energy book keeping, improvement in energy
efficiency, replacement of old and inefficient equipment by new
• Process heat and steam management - cogeneration,
• Waste heat recovery – cogeneration, use of heat exchanger,
• Electrical energy conservation in buildings and industries – substituting
incandescent lighting by compact florescent (energy efficient lighting),
• Economics of energy conservation – zero energy building, reduce carbon
Energy conservation and
demand side management
• Demand side management
– techniques for measuring energy use,
– approaches to optimizing and monitoring
energy use,
– design principles to minimize energy use in
buildings and devices, analysis of systems,
– satellite solar power system, PV cathodic
protection, and
– other related relative costs of energy
conservation and energy production in various
Demand side management
• Techniques for measuring energy use – historical data keeping using data logger
manually as well as automatic,
• Approaches to optimizing and monitoring energy use – awareness information,
automatic meter monitoring, monitoring and targeting,
• Design principles to minimize energy use in buildings and devices – application of
active and passive energy conservation principles in design,
• Analysis of systems – a detail analysis of energy use based on historical data,
• Satellite solar power system – A solar power satellite, or SPS or Powersat, as
originally proposed would be a satellite built in high Earth orbit that uses
microwave power transmission to beam solar power to a very large antenna on
Earth. Advantages of placing the solar collectors in space include the
unobstructed view of the Sun, unaffected by the day/night cycle, weather, or
seasons. It is a renewable energy source, zero emission, and generates no waste.
• PV cathodic protection, and other related relative costs of energy conservation
and energy production in various appliances
Demand Side
• Demand Side Management, or "DSM" is the process of
managing the consumption of energy, generally to
optimize available and planned generation resources.
• Demand Side Management refers to "actions taken on
the customer's side of the meter to change the amount
or timing of energy consumption. Utility DSM programs
offer a variety of measures that can reduce energy
consumption and consumer energy expenses.
Electricity DSM strategies have the goal of maximizing
end-use efficiency to avoid or postpone the
construction of new generating plants."
A Demand Side Management Program
will include measures that promotes
the following:
• Reduced customer peak and overall energy demand
• Improves the electric grid's reliability
• Balances the electric grid through increased efficiency
• Energy efficiency
• Manages electricity costs
• Conservation through both behavioral and operational
• Load management
• Fuel switching
• Distributed energy
• And provide systems that encourage load shifting or
load shedding during times when the electric grid is
near its capacity or electric power prices are high
Technologies Used in Demand
Side Management:
• Load Leveling:
These technologies are used to smooth out the peaks and dips in
energy demand — by reducing consumption at peak times ("peak
shaving"), increasing it during off-peak times ("valley filling"), or
shifting the load from peak to off-peak periods — to maximize use of
efficient baseload generation and reduce the need for spinning

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
• 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
• 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.

• For short term measures the supply-side management is

not effective as it takes long time for units to start up (if
these are available) and meet the rising demand
immediately, rather it is demand side management which
can be implemented immediately and in more economic
ways to keep the balance.