Questions and Answers
What is the main reason for implementing Demand Side Management (DSM)?
Cost reduction
What is the primary goal of Load Management in Demand Response (DR) programs?
Reduce load shedding percentage
How do utilities typically communicate with participants in Demand Response programs?
Straight communication signals (telephone, power line, pager, and Internet)
What is the principle behind Price Response programs?
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What is Direct Load Control (DLC) in Load Response programs?
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What type of contract do customers sign with utilities to participate in Interruptible/Curtailable Load Tariff (I/CLT) programs?
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What type of customers are mainly targeted by I/CLT programs?
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What is the primary difference between Critical Peak Pricing (CPP) and Extreme Day Pricing (EDP)?
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What is the main benefit of Real Time Pricing (RTP) for customers?
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What is one of the key challenges in implementing DSM programs?
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What is one of the benefits of DSM programs in terms of the environment?
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What is one of the benefits of DSM programs for the economy?
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Study Notes
Demand Side Management (DSM)
- DSM aims to reduce load shedding percentage and increase penetration level of renewable energy
- It helps to reduce cost, improve environmental and social conditions, and enhance reliability and network issues
- Promoting DSM leads to improved markets and customers' response to dynamic prices
Types of DSM
- Energy Efficiency: reducing energy consumption while maintaining same service level
- Energy Conservation: reducing energy consumption without compromising service level
- Demand Response (DR): changing consumption pattern in response to changes in price or other incentives
- Load Management: utilities controlling customers' loads to manage peak demand
Demand Response Programs
- Load Response: utility offers payment or incentives for reduction of demand during specified periods
- Price Response: customers voluntarily reduce demand in response to forward market prices
- Direct Load Control (DLC): utility remotely controls customers' loads with prior agreement
- Interruptible/Curtailable Load Tariff (I/CLT): customers agree to switch off loads as requested by utilities
- Emergency Demand Response Program (EDRP): customers paid incentives for measured load reductions during emergency conditions
Price-Based DR Programs
- Time of Use (TOU): rate differs in different time blocks
- Critical Peak Pricing (CPP): high electricity price during system contingencies or high wholesale prices
- Extreme Day Pricing (EDP): high electricity price for the whole 24 hours
- Real Time Pricing (RTP): hourly fluctuating prices reflecting the real cost of electricity
Benefits of DSM
- Reductions in customer energy bills
- Reduced need for new power plants, transmission, and distribution networks
- Creation of long-term jobs due to innovations and technologies
- Reduction in air pollution and dependency on foreign energy sources
- Reduced peak power prices for electricity
Challenges of DSM Programs
- Lack of information, communication, and technology infrastructure
- Lack of awareness about DSM and its benefits
- DSM increases system complexity compared to traditional approaches
- Improper market structure and lack of incentives
- Difficulty in changing distribution system network
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