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TARIFF OPTIONS FOR DSM 📌Efficient use of resource.
📌Reduce average cost of electric power.
📌Lead to a reduction in need peaking capacity and higher utilization of generating power.
📌A proper tariff itself lead to peak clipping and valley filling.
📌Each consumer should be charged equitably for its contribution to the total costs for generation, transmission and distribution of electric power.
The tariff structures which can promote DSM activities are as under :
a. Time of Day Tariff (ToD tariff):
📌It is also known as Time of Use Tariff. 📌Tod rates make electricity more expensive when it costs more to generate additional electricity.
📌It will encourage customer to shift their load whenever possible from peak to off peak thus flattering the load curve.
📌 This would be favourable to customer be seeing the reduced bill.
📌 It is also favourable to electricity utility who would gain by decreased in peak load.
📌ToD electricity meters have inbuilt timing unit.
b) Seasonal Tariff:
📌Rate changes across the season.
📌It is economical way of managing Demand.
📌This type of tariff does not require special type meters.
📌Electricity billing frequency has to be synchronized with time when seasonal rates come into effect.
c) Curtailable/Interruptible (C/I) rates: 📌These rates were suitable only for industrial and commercial consumers. 📌C/I rates offers incentives to those consumers who reduce demand to a predetermined level, when they receive a notice to this effect from the utility.
📌Success depends on reliable communication system.
✏️CUSTOMER ACCEPTANCE
📌Customer satisfaction should be an index for measuring success of DSM program.
📌The utility must put great emphasis on identifying and resolving the problems faced by customers.
📌Customer acceptance means willingness of customer to participate in and adopt the programme initiated by the utility.
The factors which influence customer participation are:
a)Incentives: Some programmes offer specific incentives to the customers to participate in DSM activities. In Tod tariff the customers save on their bills by shifting energy usage.
b) Marketing: Many approaches can be used to attract customers to DSM activities. Door to door campaigns, media campaigns can help a lot in this direction.
c) Effect on service: Any program which effects the desired energy service will have effect on customers decision whether to adopt the program or not. The aim should be to convince the customer about economical and beneficial for him.
d) Consumer Expenditure: High efficiency equipment need more initial investment. The customer should be educated after life cycle costs.
e) Attitude: The energy conservation program are more readily accepted and adopted than valley filling program. Customers attitudes can be altered by changing beliefs, feelings, self perceptions and social consciousness.
The decision making process for adoption of DSM program is more complex in case of commercial and industrial consumers. The reasons are:
📌The industries process required to be modified may be very complex and may be very complex and may require special design.
📌The decision may require a hierarchy if individuals representing different functions in industrial and commercial organization.
📌The decision of management may not be acceptable to the work force.
✏️IMPLEMENTATION ISSUES
Most DSM programs achieve only partial success. The factors which retain the consumers to move towards energy conservation are:
📌Lack of Information : Consumers are generally unaware of the opportunities of improving energy efficiency. Energy labels on equipment's, devices, motors etc can be helpful.
📌 Cost of Energy Efficient Equipment: Most of the customers are not willing to purchase high efficiency equipment due to high cost. Manufactures play main role in developing high efficiency equipments.
📌Tariff: In many countries the tariff for some categories of consumers is very low, even lower than cost of electricity generation.
📌Poor power Quality and Reliability: Many equipment are sensible to low voltage and voltage fluctuation. Some equipment consume more power at low voltage. Power quality and reliability must be improved for the successive implementation of DSM.
📌Unavailability of Efficient Equipments: Many efficient equipment are not available in developing countries. The manufactures are reluctant to start production of such equipments due to unsure market condition. Unavailability of raw materials are also the reason for this.
📌Small scale Sector: Many equipments are manufactured in Small scale industries. Most of these are inefficient. They produce low efficient material in low cost.
📌Retirement of Inefficient and old Equipment: Most of the time repair leads to increasing inefficient. They use substandard equipments in repair works 📌Shortage of skilled staffs: For identifying, high skilled workers were required.
