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Task 15 - Network Driven DSM

Synopsis | Introduction | Subtasks | Results | Participation | Contacts | Links | Events | Workshops | Databases | Publications

Synopsis

‘Network-driven’ demand-side management (DSM) is concerned with reducing demand on electricity networks (grids) in specific ways which maintain system reliability in the immediate term and over the longer term defer the need for network augmentation.

Problems in electricity networks are becoming significant in countries where electricity demand is increasing and network infrastructure ('poles and wires') is ageing. As loads grow and infrastructure reaches the end of its economic life, the potential cost of augmenting and providing support services for electricity networks is increasing exponentially.

Task XV identified and developed a wide range of DSM measures that can:
• relieve constraints on electricity distribution and/or transmission networks at lower costs than building ‘poles and wires’ solutions; and
• provide operational support services for electricity networks, achieving peak load reductions with various response times.

Introduction

Task XV was the first broad and systematic investigation of the potential for DSM to cost-effectively support electricity networks.

Task XV investigated DSM measures which can be used to relieve constraints on electricity networks (grids), whether these constraints are time-related (eg occurring at times of the network system peak) or location-related (eg associated with particular lines or substations) or both.  All types of constraint were addressed, including capacity limitations, voltage fluctuations, reliability issues, etc. Such network-driven DSM measures are often more cost-effective, and may also have lower environmental impacts, than network augmentation (ie building ‘poles and wires’).

In addition to relieving network constraints, DSM measures can also provide operational support services for electricity networks, including:  reactive supply and voltage control, regulation and frequency response, energy imbalances, spinning reserves, supplemental reserves, and generator imbalances.  Task XV also covered the use of DSM measures to provide network support services.

Task XV identified and developed a wide range of DSM measures which can be used to relieve electricity network constraints and provide network support services.  Network-driven DSM measures include:

  • direct load control;
  • distributed generation, including standby generation and cogeneration;
  • demand response;
  • energy efficiency;
  • fuel substitution;
  • interruptible loads;
  • integrated DSM projects;
  • load shifting;
  • smart metering;
  • power factor correction; and
  • pricing initiatives, including time of use and demand-based tariffs.

All six Subtasks of Task XV have now been completed and the results are summarised below.

Task XV facilitated international collaboration between countries.  Participating in Task XV was a very effective way of gaining valuable information about international experience in using DSM to support electricity networks. Since the costs were shared among a number of countries, the financial contribution required from each country was quite small compared with the benefits gained.

Further information about Task XV is available in a Task flyer. Inquiries about Task XV should be directed to the Operating Agent, Dr David Crossley at: crossley@efa.com.au

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Subtasks

Following are summaries of the six Subtasks of Task XV.

Subtask 1:  Worldwide Survey of Network-Driven DSM Projects

In Subtask 1, 64 detailed case studies of network-driven DSM projects from 13 different countries around the world were researched and developed.  These case studies provide detailed information about ways in which DSM measures can be used to relieve electricity network constraints and/or to provide network operational support services.

Subtask 2:  Assessment and Development of Network-Driven DSM Measures

In Subtask 2, the 64 case studies from Subtask 1 were analysed to identify 10 main categories of DSM measures that can be used to achieve network-related objectives.  The value propositions for these DSM measures were identified, including the specific network problems which each measure can successfully address.  In addition, the factors which result in a network‑driven DSM measure being successful in cost-effectively achieving network‑related objectives were determined.

Subtask 3:  Incorporation of DSM Measures into Network Planning

In Subtask 3, analyses were carried out of the interaction between network-driven DSM measures and the electricity market structures and regulatory regimes in each participating country.  The network planning processes implemented in each participating country were also identified and characterised.  Options were then developed for modifying network planning processes to incorporate DSM measures as alternatives to network augmentation.

Subtask 4:  Evaluation and Acquisition of Network-Driven DSM Measures

In Subtask 4, ‘best practice’ principles, procedures and methodologies for the evaluation and acquisition of network-driven DSM resources were identified and developed.

Subtask 5:  Communication of Information About Network-Driven DSM

Subtask 5 operated continuously throughout Task XV to communicate and disseminate information about network-driven DSM to relevant audiences, including representatives of electricity network businesses, government agencies and electricity end-users.

Subtask 6: Role of Load Control and Smart Metering in Achieving Network-related Objectives

Subtask 6 investigated the role of load control and smart metering in achieving network-related objectives.  A survey of currently available load control and smart metering technologies was carried out, focussing on the functionalities and capabilities of load control and smart metering devices that can be used to achieve network-related objectives.  The load control and smart metering projects included in the Task XV case studies database were reviewed and new case studies carried out to identify the factors that contribute to making such projects effective.  Best practices in the use of load control and smart metering to achieve network-related objectives were identified.

Progress

All subtasks have now been completed.

The results from the Subtasks are summarised below.  Detailed reports from the Subtasks are available for downloading from the Publications section.

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Results

Task XV proved that DSM can be successfully used to support electricity networks in two main ways:  1) by relieving constraints on distribution and/or transmission networks at lower costs than building ‘poles and wires’ solutions; and 2) by providing services for electricity network system operators, achieving peak load reductions with various response times for network operational support.  Some specific results from the work are highlighted below.

Worldwide Survey of Network-Driven DSM Projects

A worldwide survey was conducted that identified 64 network-driven DSM projects from 13 different countries undertaken over the past 15 years.  The survey focused on projects in the seven countries participating in the Task, but also included projects from other countries.  Detailed case studies of the projects were prepared and were included in an on-line database.  Individual case studies can be accessed in the Databases section.

The survey showed that network-driven DSM options can effectively:

  • achieve load reductions on electricity networks that can be targeted to relieve specific network constraints; and
  • provide a range of network operational services, including: reactive supply and voltage control, regulation and frequency response, energy imbalances, spinning reserves, supplemental reserves, and generator imbalances.

Another important survey finding was that all types of demand DSM measures can be used to relieve network constraints and/or provide network operational services.  However, whether a particular DSM measures is appropriate or cost effective depends on the specific nature of the network problem being addressed and the availability and relative costs of demand-side resources in that situation.

Assessment and Development of Network-Driven DSM Measures

 Task XV concluded that the value of a network-driven DSM project varies depending on the categories of stakeholders and can even vary among individual stakeholders (e.g., customers located in network-constrained areas versus customers located outside these areas).  The distribution of the benefits from network-driven DSM projects among many different stakeholders means that the project promoter is unlikely to capture all the benefits from the project because the other parties that have not contributed to the cost of implementing it may well receive some of the benefits.  To provide significant value to the project promoter, the total benefits from a network-driven DSM project must be quite large and the promoter must capture a significant proportion of these benefits.

The Task identified a number of external and internal factors that may contribute to the success of network-driven DSM projects.  Network-driven DSM projects containing the same DSM measures (such as energy efficiency, load shifting, direct load control or pricing initiatives) tend to have a common set of factors that contribute to the project’s success.  The challenge in designing a successful network-driven DSM project is to clearly identify the success factors for each of the DSM measures included in the project and then concentrate on optimizing each of these factors.

Incorporation of DSM Measures into Network Planning

Based on information from the four participating countries, it was possible to identify a number of key areas where changes could be made to increase the use of demand-side resources as alternatives to network augmentation and to provide network operational services.

 The key areas where changes could and should be made are:

  • Forecasting future electricity demand.  Forecasting methodologies frequently reduce global load forecasts by an assumed (usually small) amount to take account of the potential contribution by DSM towards supporting electricity networks.  Forecasting methodologies for network planning should be modified to more accurately account for the potential contribution of DSM.
  • Developing options for relieving network constraints.  Network businesses should provide information and formal opportunities for third parties with expertise in DSM to participate in the development of options that use demand-side resources to relieve network constraints.
  • Establishing policy and regulatory regimes for network planning.  Governments and regulators should change policy and regulatory regimes to reduce the disincentives faced by network businesses that use demand-side resources to support electricity networks.  There are two ways this could be accomplished 1) by providing policy and regulatory incentives to network businesses and 2) by imposing policy and regulatory obligations on network businesses.

Evaluation and Acquisition of Network-Driven DSM Resources

A survey of practices in Australia, France, Spain and the United States identified a range of processes for evaluating, acquiring and implementing DSM resources to provide support for electricity networks.

Good DSM resource acquisition processes include the following stages:

  • Assessing the need for DSM resources.
  • Identifying and evaluating available DSM resources.
  • Contacting potential providers of DSM resources.
  • Negotiating the provision of DSM resources.
  • Acquiring and implementing the DSM resources.

Role of Load Control and Smart Metering in Achieving Network-related Objectives 

This subtask identified three ways in which advanced metering and load control technology can be used to support electricity networks.

First, advanced meters enable the implementation of time-varying pricing which sends price signals to customers that reflect the underlying costs of generating, transporting and supplying electricity. Price-based demand response programs can reduce or shape customer demand and particularly can reduce peak loads on the electricity network and therefore reduce the amount of investment required in network infrastructure.

Second, analysing data from advanced meters provides end-users with detailed information about the ways in which they use electricity and can enable businesses to identify and implement energy, cost and carbon savings. Energy savings reduce the overall load on the electricity network, therefore contributing to supporting the network.

Third, load control technologies can be used to directly reduce peak loads on the electricity network by remotely switching appliances and equipment at customers’ premises. This is arguably the most effective mechanism for reducing peak loads since remote switching requires only one “set and forget”decision by end-use customers.

Task Publications

  • Research Report No 1:  Worldwide Survey of Network-Driven DSM Projects. Download available in the Publications section.
  • Research Report No 2:  Assessment and Development of Network-driven Demand-side Management Measures.  Download available in the Publications section.
  • Research Report No 3:  Incorporation of DSM Measures into Network Planning.  Download available in the Publications section.
  • Research Report No 4:  Evaluation and Acquisition of Network-driven DSM Resources.  Download available in the Publications section.
  • Research Report No 5:  The Role of Advanced Metering and Load Control in Supporting Electricity Networks.  Download available in the Publications section.
  • On-line Database: Case Studies of Network-Driven Demand Side Management Projects.  Each of these 64 detailed case studies can be accessed in the Databases section.
  • On-line Database: Load Management Technology Products.  Detailed descriptions of 17 technology products can be accessed in the Databases section.

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Participation


Task XV

Australia

 

France


India


New Zealand

Spain


South Africa

United States



Operating Agent

 

Participating Country

 

Task XV has been completed and therefore is no longer open for participation.

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Contacts

Dr. David Crossley [AUS] Operating Agent [ crossley@efa.com.au ]
Robert Angioletti [FR] Expert [ robert.angioletti@ademe.fr ]
Ron Beatty [NZ] Expert [ ron.beatty@electricitycommission.govt.nz ]
Bruce Bennett [AUS] Expert [ bruce.bennett@sp-ausnet.com.au ]
Selwyn Blackmore Expert [ selwyn.blackmore@eeca.govt.nz ]
Brian Bull [NZ] Expert [ brian.bull@electricitycommission.govt.nz ]
Leith Elder [AUS] Expert [ leith.elder@countryenergy.com.au ]
Beatriz Gomez Elvira [ESP] Expert [ bgomez@ree.es ]
Andrew Etzinger [SA] Expert [ andrew.etzinger@eskom.co.za]
John Gleadow [NZ] Expert [ john.gleadow@electricitycommission.govt.nz ]
Neil Gordon [AUS] Expert [ ngordon@energy.com.au ]
David Green [AUS] Expert [ dgreen1@powerlink.com.au ]
Magnus Hindsberger [NZ] Expert [ magnus.hindsberger@transpower.co.nz]
Bevan Holcombe [AUS] Expert [ bevanholcombe@energex.com.au ]
Alan Jenkins Expert [ adj@electricity.org.nz ]
Balawant Joshi [IN] Expert [ balawant.joshi@abpsinfra.com ]
Brendan Kirby [USA] Expert [ kirbybj@ornl.gov ]
Therese Kreitz [FR] Expert [ therese.kreitz@ademe.fr ]
John Kueck [USA] Expert [ kueckjd@ornl.gov ]
Saurabh Kumar [IN] Expert [ saurabhkumar@nic.in ]
Mark Lendich [AUS] Expert [ marklendich@energex.com.au ]
Adam Leslie [AUS] Expert [ aleslie@powerlink.com.au ]
Neil Lowry [AUS] Expert [ neil.lowry@ergon.com.au ]
Dr Ashok Manglick [AUS] Expert [ ashok.manglick@transgrid.com.au ]
Larry Mansueti [USA] Expert [ lawrence.mansueti@hq.doe.gov ]
Leonard Maeder [AUS] Expert [ leonard.maeder@alinta.net.au ]
Stephen Martin [AUS] Expert [ smartin@powerlink.com.au ]
Ed Pegiel [AUS] Expert [ ed.pegiel@alinta.net.au ]
Michael Pelevin [AUS] Expert [ mpelevin@powerlink.com.au ]
Duncan Ramsbottom [ZA] Expert [ duncan.ramsbottom@eskom.co.za]
Max Rankin [AUS] Expert [ max.rankin@sp-ausnet.com.au ]
Ms. Carmen Rodriguez Villagarcia [ESP] Expert [ carmenrodri@ree.es ]
Frédéric Rosenstein [FRA] Expert [ frederic.rosenstein@ademe.fr ]
Harry Schaap [AUS] Expert [ harry.schaap@tpg.com.au ]
Harry Schnapp [AUS] Expert [ harry.schnapp@transgrid.com.au ]
Mike Sim Expert [ mike.sim@med.govt.nz ]
Russell Stewart Expert [ russell.stewart@transpower.co.nz]
Ian Thompson [AUS] Expert [ian.thompson@countryenergy.com.au ]
Steve Torrens [NZ] Expert [steve.torrens@eeca.govt.nz ]
Frederic Trogneux [FR] Expert [ frederic.trogneux@rte-france.com ]
Col Ussher [AUS] Expert [ col.ussher@countryenergy.com.au ]
Alain Valsemey [FR] Expert [ alain.valsemey@rte-france.com ]
Gabriel Wan [AUS] Expert [ gabriel.wan@alinta.net.au ]
Alex Nisbet [NZ] Expert [alex.nisbet@oriongroup.co.nz ]
Saurabh Kumar [IN] Expert [saurabhkumar@nic.in]

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Links

 

.

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Events

There are currently no scheduled events for this task.

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Workshops

Workshop on

"Using Demand Side Management to Support Electricity Grids"

 - held in Mumbai, India, 26 March, 2008 

For workshop Agenda click HERE

Technical Session I: Role of DSM in Electricity Grids
Chairman: Dr. Ajay Mathur, Director General, Bureau of Energy Efficiency (BEE), India

International Experience in Using DSM to Support Grids - presented by Dr. David Crossley, Energy Futures Australia, Australia.

National DSM Roadmap - presented by Mr. Saurabh Kumar, Secretary, Bureau of Energy Efficiency (BEE), India.

Spanish DSM Initiatives - presented by Ms. Beatriz Gomes, RED Eléctrica, Spain.

DISCOM - presented by Mr. Vijay Sonawane, ED-MSEDCL, India.

Technical Session II: Preparatory work for launch of DSM program
Chairman: Mr. Devender Singh, Joint Secretary, Ministry of Power, India

DSM for Network Investment Deferral in New Zealand - presented by Mr. Magnus Hindsberger, Transpower, New Zealand.

DSM - Regulatory Approach in Maharashtra - presented by Mr. M. Palaniappan, Director, ABPS Infra, India.

Doing DSM in India - Some Issues and Challenges - presented by Mr. Daljit Singh, Prayas Energy Group, India.

Utility Experience in Chhattisgarh - presented by Mr. V.K. Jain, Member (T) - CSEB, India.

Status of DSM in USA - presented by Mr. Walter Dykas, Oak Ridge National Laboratory, Power System Research program, USA.

DSM Implementation Challenges in Mumbai Utilities - presented by Mr. Ashoka Sethi, Tata Power, India.

Technology Issues in DSM - presented by Mr. Ramesh Bhatia, Conzerve, India.

Funding Challenges - presented by Mr. Charles Cormier, World Bank.

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Databases

Case Studies Database

Enables access to detailed case studies of 64 network-driven DSM projects implemented in 13 different countries.  The list of case studies contains links to print hard copies of the text of each case study.  Some case studies include figures and tables in an Appendix; these can also be printed.

Load Management Technology Database

Enables access to descriptions of 17 load management technology products. The list of products contains links to print hard copies of the text of each description. Some descriptions include figures and tables in an Appendix; these can also be printed.

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Publications

Research Report No 1: Worldwide Survey of Network-driven Demand-side Management Projects. Second edition
[4692 kb]
 Reviews and summarises the results of a sample survey of 64 network-driven DSM projects undertaken worldwide over about the last 15 years. The survey focuses on projects carried out in the seven coun...
Research Report No 2: Assessment and Development of Network-driven Demand-side Management Measures. Second edition
[338 kb]
 This report: 1) identifies the value proposition for network-driven DSM measures, including the specific network problems which these measures can successfully address; 2) determines the factors which...
Research Report No 3: Incorporation of DSM Measures into Network Planning. Second edition
[1923 kb]
 This report: 1) describes how network-driven DSM measures interact with the electricity market structures and regulatory regimes existing in each participating country; 2) identifies and characterise ...
Research Report No 4: Evaluation and Acquisition of Network-driven DSM Resources. Second edition
[426 kb]
 This report has two objectives: to summarise and review how DSM resources are evaluated, acquired and implemented in participating countries; and to develop ‘best practice’ principles, procedures an...
Research Report No 5: The Role of Advanced Metering and Load Control in Supporting Electricity Networks
[2950 kb]
 The purpose of this report is to summarise ways in which advanced metering and load control technology can be effectively utilised to support electricity networks....
Task XV Flyer
[254 kb]
 Outlines Task XV research on demand side management (DSM) measures which may provide viable alternatives to augmentation of electricity networks (grids) and also provide network operational services....

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