Opportunities for demand side management (DSM) in integrated energy resource planning and development in the power sector: the case of Zimbabwe

Abstract

Traditionally the development of power systems has largely been dominated by the drive towards matching forecasted demand with generation supply capacity. This often takes the form of increasing generation capacity in order to meet forecasted demand. With the current envisaged electrical energy shortfall in the Southern African Region, by 2007, DSM presents itself as an immediate strategy to alleviate this potential situation. There are a number of opportunities for DSM initiatives in the region, which if fully exploited, will create useful virtual generation capacities in a number of countries that can enable minimization of the forecasted shortfall, and also contribute positively to reduction in global warming effects. In order to accommodate the ever-growing environmental concerns,, there is a growing drive in the power sector to move away from the vertical approach to power systems planning and economics and move towards integrated resource planning approaches. In this endeavor, the objective is to match demand for electrical energy services in a way that minimizes the overall social costs. The power system planner needs to examine the full portfolio of available investment options on both sides of the customer meter. Demand side management (DSM) options present themselves as noble options in the planning of future power systems. This paper highlights the opportunities for DSM as an option in modern energy resource planning approaches. The paper will present the potential energy savings that could be realized from DSM initiatives as obtained in previous studies in Zimbabwe. It will also highlight the initiatives currently being taken to incorporate DSM in the whole planning process, the problems being encountered and recommendations on the way forward. If fully exploited, DSM options can prudently assist in efforts currently being taken to reduce global warming effects emanating from conventional electricity generating sources