demand side management |
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What is Demand Demand is the instantaneous use of electric power and is rated in kilowatts (kilowatts). Energy consumption is how much power is used over time and is rated in kilowatt-hours (kWh). Energy demand as seen by the utility company varies throughout the day, with the peak typically occuring during day hours when buildings are occupied and equipment such as air conditioners are running.
Demand Charge It costs the utility more to produce power during on-peak hours of high energy demand. It passes on this cost by charging customers (typically commercial and industrial customers rate payers) a demand charge based on the facility's peak demand (kW) for any 15 minute interval of the billing cycle. Some utilities also charge different electrical usage rates (kWh) for on-peak and off-peak hours, with on-peak having a higher rate.
Demand Side Management Demand side management (DSM) is a modification of energy demand, with a goal to lower the maximum peak demand of the facility. DSM does not decrease energy consumption, but by lowering the demand charge of the facility, a facility can lower their electric bill. The demand charge can commonly account for 30% or more of a utility bill, and not looking at DSM is missing a large piece of the pie.
Types of demand side management include:
Example of reducing daily peak demand by load leveling using demand side management:
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