Guidebook prepared by International Institute for Energy Conservation (IIEC)
EXECUTIVE SUMMARY
The International Institute for Energy Conservation (IIEC) has developed this Guidebook as part of the Pacific Island Demand-Side Management (DSM) initiative, a programme funded by the United Nations Department of Economic and Social Affairs (UNDESA). The purpose of this Guidebook is to facilitate the development, financing and implementation of Demand-Side Management (DSM) projects in the Pacific Island Countries (PICs), by providing guidelines for DSM programme development and documented international DSM case studies. This Guidebook introduces the DSM concepts, gives the reader a perspective on the DSM opportunities in the PICs and provides a compendium of case studies from different sectors and countries and a proposed methodology for implementation of DSM in the Pacific Island utilities.
The International Institute for Energy Conservation (IIEC) has developed this Guidebook as part of the Pacific Island Demand-Side Management (DSM) initiative, a programme funded by the United Nations Department of Economic and Social Affairs (UNDESA). The purpose of this Guidebook is to facilitate the development, financing and implementation of Demand-Side Management (DSM) projects in the Pacific Island Countries (PICs), by providing guidelines for DSM programme development and documented international DSM case studies. This Guidebook introduces the DSM concepts, gives the reader a perspective on the DSM opportunities in the PICs and provides a compendium of case studies from different sectors and countries and a proposed methodology for implementation of DSM in the Pacific Island utilities.
INTRODUCTION
As with other developing countries the Pacific Island Countries (PICs) have experienced significant increase in electricity demand and as a result greater emphasis is now being placed on DSM and energy conservation activities. Most PICs are reliant on imported fossil fuel for electricity generation and are more vulnerable to the impacts of high oil prices. DSM offers significant benefits to PIC utilities, their customers and the PIC economies. From a utility perspective, in addition to reducing supply costs, DSM benefits also includes deferral of capital expenditure on generation, transmission and distribution facilities, improved system load factor, better customer relations and better data for load forecasting and system planning.
As with other developing countries the Pacific Island Countries (PICs) have experienced significant increase in electricity demand and as a result greater emphasis is now being placed on DSM and energy conservation activities. Most PICs are reliant on imported fossil fuel for electricity generation and are more vulnerable to the impacts of high oil prices. DSM offers significant benefits to PIC utilities, their customers and the PIC economies. From a utility perspective, in addition to reducing supply costs, DSM benefits also includes deferral of capital expenditure on generation, transmission and distribution facilities, improved system load factor, better customer relations and better data for load forecasting and system planning.
DSM DEFINITION AND RATIONALE
Changing electricity markets in the developing and the developed countries face several challenges, largely due to the uncertainties in the load growth, higher investments required in capacity addition, declining fuel sources and its associated environmental costs.
Changing electricity markets in the developing and the developed countries face several challenges, largely due to the uncertainties in the load growth, higher investments required in capacity addition, declining fuel sources and its associated environmental costs.
Tariff changes due to the changing regulatory stands also affect the ability of utilities to service its customer base. The concept of Demand-Side Management (DSM) was developed in response to the potential problems of global warming and the need for sustainable development, and the recognition that improved energy efficiency represents the most cost- effective option to reduce the impacts of these problems.
DSM refers to cooperative activities between the utility and its customers (sometimes with the assistance of third parties such as energy services companies and various trade allies) to implement options for increasing the efficiency of energy utilization, with resulting benefits to the customer, utility, and society as a whole. Benefits of the DSM initiatives are diverse.
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