How demand side management can change the load shape Please

How demand side management can change the load shape? Please explain. Thanks and regards.

Solution

Energy demand management, also known as Demand Side Management (DSM) or Demand Side Response (DSR) is the planning, implementation, and monitoring of those utility activities designed to influence customer use of electricity in ways that will produce desired changes in the utility\'s load shape, i.e., changes in the time pattern and magnitude of a utility\'s load.

DSM value is influenced by load shape that implies an evaluation process for examining the value of various programs that how they influence costs and benefits for whole day.

DSM is to establish overall organizational objectives that are quite broad and generally include examples like reduce energy needs, reduce dependence on foreign imports, improve cash flow, increase earnings/improve customer and employees relationship. The second level of the formal planning process is to operationalize broad objectives to guide policymakers to specific actions. Postponing the need for new construction through a DSM may reduce investment needs and stabilize the financial future of an energy company, or a utility and its state or nation. Specific operational objectives are established on the basis of the conditions of the existing energy system & its system configuration, cash reservoirs, operating environment, and competition between various compies. Once designated the operational objectives, they are translated into desired demand-pattern changes or load-shape changes that can be used to characterize the potential impact of alternative demand-side management programs. Although there is an infinite combination of load-shape-changing possibilities, some of them are peak clipping, valley filling, load shifting, strategic conservation, strategic load growth, and flexible load shape which has vast range of possibilities.