Integrating distributed generation technology into demand management schemes

Recent developments in distributed generation technology bring about extra flexibility into existing demand management schemes. Many utilities have implemented various demand management programs to help in problematic times of the power system. This paper explains how existing demand management ideas can be supplemented by the use of distributed generation technology. More specifically, it compares economic aspects of using demand management contracts with the use of distributed generation. A key observation of this paper is that there are cases where it is more beneficial to use distributed generation rather than demand management contracts.