The Ministry of Power, Government ofIndia, defines Demand Side Management (DSM) as ‘actions of aDistribution Licensee (Utility), beyond the customer'smeter, with the objective of altering the end-use ofelectricity - whether it is to increase demand, decrease it,shift it between high and low peak periods, or manage itwhen there are intermittent load demands - in the overallinterest of reducing the costs of electricity supply’.Another definition of DSM, widely accepted by Indianindustry, is that ‘DSM refers to cooperative activitiesbetween the utility and its customers (sometimes with theassistance of third parties such as energy servicescompaniesand various trade allies) to implement options forincreasing the efficiency of energy utilization, withresulting benefits to the customer, utility, and society aswhole'. Often the terms energy efficiency and DSM areused interchangeably. It is important to understand that DSM(in this report) explicitly refers to all those activitiesthat involve deliberate intervention by the Electric Utilityin the marketplace so as to alter the consumer's loadshape. Because end use energy efficiency solutions can alsoalter consumers’ load shape, all references to DSM in thisreport includes potential energy efficiency solutions thatcan be effectively delivered with some form of utilityintervention. In fact, the later sections of the report thatdiscuss Utility DSM potential in India categorize DSMopportunities into three principal groups, one of which isenergy efficiency.
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