Demand-side management mechanisms in industry

Abstract

Intensive development of technologies that increase energy efficiency makes the global and the Russian industry consider the introduction of demand-side management mechanisms. Though demand-side management technologies in Russia are at the early stages of introduc tion, existing mechanisms of electricity and natural gas supply allow consumers to reduce their costs and result in equalization of the demand for energy across the entire energy system. The research objective is to explore the energy tariffs in the wholesale and retail markets and mecha nisms for supplying natural gas by regional contractors as well as using the commodity exchange. The authors design mechanisms for industrial consumers to choose the most efficient options to pay for energy resources using the criterion of demand-side management. The research method ology includes the theory of industrial markets and a problem-oriented approach. The authors apply analysis, synthesis, system analysis, statistical methods. Yielded results of the research into programmes on demand-side management administered in different countries enable the authors to prove that the most efficient direction for demand-side management development in Russia is economic norm setting. Within this direction the authors develop algorithms and decision-making matrices for choosing the most efficient tariff option to buy electricity and natural gas by industrial consumers. The researchers evidence the possibility of implement ing demand-side management on energy markets of Russia and provide methodological and organisational support. The findings can be helpful for industrial enterprises and government agencies developing and running their energy efficiency improvement programs.