DEMAND SIDE MANAGEMENT FOR LOSS REDUCTION IN ELECTRIC POWER SYSTEM

Reducing electric power loss using the demand side of the utility

Reducing losses in an electric utility can be done in many different ways each of its own advantages and disadvantages. Majority of this loss reduction program focuses on the supply side of the utility. To name a few includes conductor wire upgrades, increasing the primary voltages, balancing the currents in each phases, adding line capacitors and many more.

Another effective way of reducing losses in an electrical system involves the manipulation of the consumer or the load side of the network. This method is popularly known as Demand Side Management.

Demand Side Management is the careful planning, implementation and evaluation of programs to influence the amount or timing of energy usage by consumers. 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.

Supply Side Management usual involves increased in generation capacity, improve generation efficiency, and reduce transmission and distribution losses all done at the point before the consumer meter. On the other hand, Demand Side Management focuses its activities after the consumer meter which includes reducing the power demand, reducing the energy consumption, and shifting of energy time of use.

Demand Side Management can also be called as Load management since the activities done involves reduction of the peak load where occasionally peak loss also exists. Reducing peak loads can be either shifting loads from peak to off-peak hours or to increase load during off-peak hours.

Techniques done demand side management involves direct and indirect approach where it requires the collaboration between the utility, the consumer, and equipment manufacturers. Direct approach can be in the form of load-shedding/rostering or coordinated system operation while indirect approach can be in the form of Time of Use tariff, incentive to interruptible supply, co-generation, captive generation during peak hours, and incentive to efficiency.

To summarize the benefits of Demand Side Management regarding its implementation will most likely to:

• Improve the efficiency of energy systems – through improved generation efficiency and system load factor
• Reduce financial needs to build new energy facilities (generation) – through deferral of capital expenditure resulting from peak demand reduction through DSM
• Minimize adverse environmental impacts – reduction of GHG emissions through efficient generation and minimizing thermal generation.
• Lower the cost of delivered energy to consumers – lower generation costs and lower customer bills through the use of energy efficient equipment and appliances.
• Reduce power shortages and power cuts – improved system reliability though decrease in demand.
• Improve the reliability and quality of power supply – through demand reduction in distribution systems
• Contribute to local economic development – increased employment through reallocation of capital to other development projects.