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What is Demand Side Management?

What is Demand Side Management?

DSM encompasses “systematic utility and government activities designed to change the amount and/or timing of the customer’s use of electricity” for the collective benefit of the society, the utility and its customers. As such, it is an umbrella term that includes several different load shape objectives, including load management (LM), energy efficiency (EE) and electrification.

The Objectives

DSM objectives are normally categorized into Corporate, Load Shape and Non-Load Shape objectives and are described below.

Corporate Objectives

In order for the CEB to achieve its Mission it has set operational and management objectives. This would include improving power quality and reliability, minimizing pilferage, reducing system losses, improving the distribution network, upgrading sub-stations, high collection efficiency, improving customer service etc.


Load Shape Objectives

Inevitably, as DSM is being considered primarily as a cost-effective alternative to supply-side options, the extent to which a given DSM program meets the CEB’s load shape objectives is of paramount consideration. Like supply-side options, DSM options generally primarily address one of the following specific load shape objectives

Peak Clipping

the reduction of utility load primarily during periods of peak demand


the improvement of system load factor by building load in off-peak periods

Load Shifting

the reduction of utility loads during periods of peak demand, while at the same time building load in off-peak periods. Load shifting typically does not substantially alter total electricity sales.


the reduction of utility loads, more or less equally, during all or most hours of the day

Load Building

the increase of utility loads, more or less equally, during all or most hours of the day

Provision of a more flexible Utility Load Shape

refers to programs that set up utility options to alter customer energy consumption on an as-needed basis,as in interruptible / curtailable agreements