|
The Concept and Benefits
DSM is defined as an intervention by a utility on the “customer side of the meter” to change the way customers use electricity. It is a partnership between the utility (or government) and customer with benefits to both.
|
DSM Benefits |
|
Customer |
Society |
Utility |
|
Lower bills |
Capital freed for other projects |
Lower cost of service |
|
Improved service |
Reduce foreign debt |
Less generation and transmission capacity required |
|
Non-energy business benefits |
Lower business costs |
Improved operating efficiency |
|
Reduced pollution |
Improved customer service |
|
Conservation of indigenous energy resources |
|
DSM offers utilities the opportunity to address several operational and management issues – improvement of power quality and reliability, reduction of system losses, easing transmission network constraints etc. DSM is feasible in situations where the cost of DSM is lower than the cost of supply. It is often used as a part of capacity expansion management strategy and in situations of supply capacity shortfall.
For customers, DSM offers reduction in bills and as a result its perception of the utility is vastly improved. From a societal perspective, DSM frees up capital for other projects and offers significant environmental benefits.
The Market
Most utilities in Asia are now including DSM into Integrated Resource Planning (IRP) but the full benefits of DSM are still to be acquired. Major international donor agencies like the World Bank, USAID and the United Nations Development Programme (UNDP) have recently funded national DSM programs in Asia – Thailand, Philippines, Sri Lanka, Pacific Islands, Malaysia, Indonesia and Vietnam. Most programs are in the pilot program phase and DSM activity is expected to increase significantly in the medium term. More recently the electricity utility in South Africa (ESKOM) has begun implementing a 10-year DSM program and a national DSM project funded by the World Bank is planned in Ethiopia. ESKOM, in partnership with IIEC, has submitted a proposal for DSM capability building in other African countries. In India, the Energy Conservation Act lists DSM as one of the key activities and plans are now underway to set-up DSM Cells in some State utilities.
IIEC Expertise and Experience
Wealth of international experience especially in Asia, Africa and Pacific Region: Current staff at IIEC has extensive experience in projects in the energy sector in Australia, New Zealand, Philippines, China, Sri Lanka, Malaysia, Vietnam, Thailand, Fiji, Papua New Guinea, Solomon Islands (all the South Pacific Forum Island Countries), South Africa and India on energy efficiency and related projects.
Practical experience in DSM Program Design and Implementation: IIEC staff has had significant recent (and some current) experience in all aspects of DSM Program design, implementation, monitoring, evaluation, load and market research and training. These include the following:
· Philippines: DSM Program (1997 – 1999) – USAID Funded
· Sri Lanka: DSM Implementation and Load Research Project (1998 – 2001) – World Bank funded
· Vietnam: Commercial Energy Efficiency Project (2002) – World Bank funded
· South Africa: DSM Program (2002) – USAID funded
DSM Asset Management Research and Scenario Development (2003) - Eskom
· Pacific Islands: DSM Pilot Project Design & Implementation (on-going) – UNDP funded
Commitment to training and capability building: IIEC stresses capability transfer to and the active involvement of local personnel in all assignments. IIEC take a “learn-by doing” approach and have also completed formal training courses on DSM and load research in many countries in the Asian region.
Availability of specialised DSM software: IIEC have developed user-friendly DSM analysis software that is specifically applicable to small to medium utilities. Based on the extensive DSM activity in the Philippines over the last 5 years, IIEC developed an Excel based DSM program analysis tool called DSMCalc which has been successfully used in over 40 utilities in the Philippines and in Sri Lanka.
Recent IIEC Experience
|
Service Areas 
