Demand Side Management in a highly decentralized energy future

Demand Side Management (DSM), first referred in the US in the late 1970s, is based on the purpose of the planning, implementation and monitoring, of the activities of electric utilities to influence customer usage of electricity that will result in desired changes in the load shape experienced by the distribution system, i.e. changes in the time pattern and magnitude of the network load. The objective of DSM activities is to influence the load-shape and make a reduction of the total load demand of the distribution system during peak periods in order to maintain the integrity of the network and stability of the whole system. The significance of successful planning and implementation of DSM requires balancing the relationship between the utilities and the customer requirements. The network load shape can be altered by means of six broad categories: peak clipping, valley filling, load shifting, strategic conservation, strategic load growth, and flexible load shape. Increasing energy efficiency, application of peak load shifting in controllable environment, installation of decentralized energy sources and smart grid components, and implementation of supporting policies are currently under serious consideration and trial and can be viewed as extensions of the traditional approaches to DSM. This paper refers to the literature review on basic DSM principles, operational issues, and economic perspectives in the LV networks.