Cost effect of non-performing DSM projects

Demand Side Management (DSM) projects have the potential to significantly reduce electricity costs. Currently several potential cost risks threaten to further increase input costs at a rate far exceeding the CPI inflation. This impacts directly on the profitability of businesses, especially mines, plants and manufacturers, where electricity is a major input cost It is therefore critical to maximise DSM cost savings and also to ensure that these projects remain sustainable. This paper investigates some of the problems associated with sustainability. From the investigation it is clear that these hurdles can be overcome. The benefits in addressing these issues outweigh by far the effort and costs needed to correct these problems. Outsourcing of the DSM systems´ maintenance is a viable solution.