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DSM Past , present and future

DSM Past , present and future. Hans Nilsson Chairman of the IEA DSM-Programme. IEA-DSM (a growing family). Australia Italy Austria Japan (Japan Facility Solutions) Belgium Korea Canada Netherlands Denmark Norway Finland Spain France Sweden Greece United Kingdom

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DSM Past , present and future

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  1. DSMPast, present and future Hans Nilsson Chairman of the IEA DSM-Programme

  2. IEA-DSM (a growing family) Australia Italy Austria Japan (Japan Facility Solutions) Belgium Korea Canada Netherlands Denmark Norway Finland Spain France Sweden Greece United Kingdom India United States New Zealand Switzerland Schneider Electric South Africa (ip) China (obs) Eurelectric (obs) Edison Electric Inst. (inv) ICLEI (inv) The Regulatory Assistance Project (obs) www.ieadsm.org

  3. Difference in Electricity Investment in the Alternative vs. Reference Scenario 2003-2030 1 000 500 Efficiency measures Avoided supply-side investment Difference 0 Generation Additional demand-side billion dollars (2000) investment Transmis- sion - 500 -1 000 Distribu- tion -1 500 -2 000 Additional investments on the demand side are more than offset by lower investment on the supply side Source WEO 2004

  4. The strategy of the IEA DSM Programme • Vision: Demand side activities should be the first choice in all energy policy decisions designed to create more reliable and more sustainable energy systems. • Mission: To deliver to our stakeholders useful information and effective guidance for crafting and implementing DSM policies and measures, along with the necessary technologies and applications, which together can transform markets and facilitate energy system operations.

  5. The imperative logic of Demand Side Management • A better use of resources equals lower cost for service • A balanced use of resources means a more secure and reliable energy supply • An expansion for products/services using less energy (using more wisely) is an injection for future business • A step change in improved energy efficiency is the only way to achieve wide-spread welfare without resources depletion

  6. What is DSM? • DSM is universal and does not only apply to utilities, electricity or monopolies • DSM encompasses the entire range of management functions (planning, evaluation, implementation and monitoring) • DSM = Large-Scale Deployment of Energy Efficient Equipment by use of specially designed Programmes

  7. The issues! Load level a wasteful demand requires too much supply for the specific needs Load shape high peaks, little reserve capacity, bottlenecks in transmission and distribution Market responsibilities who is the owner of the problem?

  8. DSM can change the LOAD LEVEL Strategic growth To This Strategic Saving From this Or to this Adapts the system to the environmental requirements From “carbon-fat” to carbon-lean

  9. DSM can Change the LOAD SHAPE SHIFT Before PEAK After VALLEY Adapts the load to the capacity of the system Winter Summer Winter or Day Night Day

  10. Future Business – The two extremes • Technology driven (Adapt and combine technologies). Stakeholders are already identified actors who enters when the incentives are right • Service driven (Adapt business structure). Some stakeholders are new emerging and integrated to deliver services in accordance with needs and regulations)

  11. Service Technology Source: http://www.mckinseyquarterly.com/Public_Sector/Economic_Policy/Business_strategies_for_climate_change_2125

  12. Business interest in DSM

  13. Past, Present and Future Tasks

  14. Change Agents (companies, intermediaries, catalysts)

  15. The smart grid – A happy marriage ?

  16. New Technologies Source: An EPRI Initiative to Advance the Efficient and Effective Use of Energy

  17. Policy drivers

  18. Climate • Strong policy-drive gives many opportunities to find support for focused programmes, especially when fossil fuel is targeted and renewables promoted • Crosscountry activities in e.g. CDM • Emission rights trade and carbon taxes provide financial incentives

  19. Energy Efficiency is the first step on the road to sustainability

  20. Energy Security • Fuel and system diversification is increasingly important and is coupled to use of distributed generation • Supplier market position and demand elasticity is an issue with policy implications (windfall profits)

  21. Industry development • The ongoing crisis gives policy incentives to develop new industries, especially related to ”smart grid” functions • Job creation • Changes requires new partnerships where technologies meet market skill

  22. Succes at last!? • Today the UN-FCCC supported by the UNDP and the General Secretary of the UN will declare that DSM will be mandatory in all countries from 2010!! • Remember todays date!! • APRIL 1st, 2009

  23. Is sustainable growth possible… ..without DSMand without global co-operation?

  24. www.ieadsm.org

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