Systematic Review of Demand-Side Management Strategies in Power Systems of Developed and Developing Countries

Abstract

Balancing electricity demand and supply remains a significant challenge for the power systems in developing countries, such as Nigeria. In Nigeria, there is a shortage of adequate power supply, and demand-side management (DSM) plays a minor role in the power balancing mechanism with load shedding being widely used. The paper aims to review and compare various existing and emerging DSM strategies in developing countries. An extensive and systematic review was conducted to evaluate potential solutions using DSM to increase the overall energy efficiency in the Nigerian electricity market. This study found that, although the technical and economic potentials of DSM vary in developed countries, the uptakes of DSM have been severely hampered hence preventing the full exploitation and utilisation of the full potential of DSM. The initiatives of a DSM model in Nigeria and other developing countries can play a significant role in addressing demand and supply challenges but an upgrade of the energy infrastructures, a reform of the market structure and the provision of financial incentives are required to allow for wide implementations of DSM strategies in developing countries.