Application of novel DSM techniques for industrial peak load management

Demand for Electrical Energy in developing countries is rising significantly. Every year the demand of electricity is increasing by 6–8 percent while production is not increasing with the same rate. When demand is more than supply, it leads to peak alarm and energy shortages continue to outbreak the sector. The gap between demand and supply of electrical energy is widening at the rate of 3% day by day. Bridging this gap by setup of new power plant is very difficult, expensive proposition and time taking process. The only value way in handling these crises is Demand Side Management (DSM) Strategies. DSM focuses on optimal utilization of available electricity during peak and off peak hours, this helps to maintain consumer loads indirectly by reducing the unscheduled outages. As there is a strict control over the maximum demand to avoid paying penalty on excess maximum demand for the consumer. This paper examines types of DSM measures that can reduce energy demand to electric utilities. In addition it illustrates how existing utility data can be used to predict customer demand management behavior. With reduction in consumer load during peak hours, there is great improvement in the load curve and load factor along with saving in energy bill due to lowering MD charges during peak hours.